BB simplifies foreign currencies retention rules

Bangladesh Bank (BB) has eased foreign currencies or FC retention rules for specialized zone exporters. Bangladesh Bank has granted Type B and Type C industrial enterprises in specialized economic zones - including Export Processing Zones or EPZs, PEPZs, EZs, and Hi-Tech Parks - greater flexibility in retaining repatriated export proceeds in foreign currency (FC).

In a circular issued on Sunday (10 August 2025) the central bank aligned retention rules for enterprises between specialized zones and non-specialized zone exporters. Under the revised policy, banks can allow zone enterprises to keep export proceeds in a back-to-back settlement pool in FC until back-to-back import payments are made.

The retained amount can include both the back-to-back import settlement portion and the local value-added portion. The value added portion can be held for up to 30 days to meet admissible FC obligations. Within this period, unutilized funds can be transferred to other banks to settle import liabilities of exporters or their subsidiaries/sister concerns in specialized zones. After 30 days, any unused funds will be cashed into Taka, with at least 20% (25% for the garments sector) of total repatriation converted before crediting remaining balances to exporters' FC accounts. For exporters operating without back-to-back arrangements, export proceeds can also be retained in FC for up to 30 days for permissible uses, including transfers to other banks for settling import payments of exporters' subsidiaries/sister concerns operating in specialized zones.

Any remaining balance after this period can be transferred to exporters' FC accounts, subject to the same encashment requirement as applicable for back-to-back arrangement. Business insiders and financial experts have said that the move will ensure regulatory parity between specialized and non-specialized zones, improve operational efficiency, and bolster foreign currency liquidity management.

Of late Bangladesh Bank is restlessly looking for different options and working on several financial strategies to attract investors because local entrepreneurs and foreign business enterprises are not being encouraged at the nosedive in law and order situation across Bangladesh and the turbulence going on in garments industry since August 2024.

Readymade garments workers, students, jobless people, political fronts, teachers, religious clerics etcetera have been demonstrating on roads causing massive traffic blockages almost everyday for last one year. Even government employees have also staged agitations and chanted slogans against their superiors inside the Secretariat which never happened before in Bangladesh's history.  A broad number of factories have been laid off over the preceding months which has rendered thousands of people unemployed.