Bangladesh Bank (BB) has allowed local merchants like hotels, resorts, restaurants, shopping malls and retail outlets to retain up to 15% of their foreign currency receipts in dedicated foreign currency (FC) accounts when foreign visitors pay using international cards.
According to a circular issued on Sunday by the central bank's Foreign Exchange Policy Department-2, the remaining 85% of foreign currency earnings must be encashed into Bangladeshi Taka. The initiative aims to boost sales of local goods and services to international tourists and visitors.
The central bank clarified that the foreign currency retained in these accounts may be used to settle legitimate foreign exchange obligations for current account transactions, such as payments made through international cards in line with guidelines issued on September 30, 2026.
Authorised dealers (ADs) in foreign exchange have been instructed to ensure the deduction and payment of all applicable taxes and Value Added Tax (VAT). Banks must also verify that participating merchants possess valid merchant arrangements for accepting internationally issued card payments.
Furthermore the institutions must maintain strict compliance with Know Your Customer (KYC) norms, Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) standards, alongside regular reporting to Bangladesh Bank.
