BB expands FC-Taka swap facility to ease exporters' liquidity crunch

Bangladesh Bank (BB) has expanded its Foreign Currency (FC)-Taka swap facility, enabling exporters operating in the country's specialised economic zones to obtain short-term Taka financing without having to convert or deplete their foreign currency holdings.

The central bank issued a circular to all Authorised Dealer (AD) banks on Monday, extending the facility to exporters in Export Processing Zones (EPZs), Private Export Processing Zones (PEPZs), Economic Zones (EZs) and High-Tech Parks (HTPs). The move is expected to ease liquidity pressures on export-oriented industries while helping them preserve valuable foreign exchange for future international transactions.

Under the revised policy, exporters may temporarily place the unencumbered balances held in their eligible foreign currency accounts with a bank under an FC-Taka swap arrangement. In exchange, the bank will provide short-term Taka liquidity. 

At the end of the swap period, exporters will repay the Taka and recover the same amount of foreign currency, allowing them to finance domestic operating expenses�"including wages, utility bills and supplier payments�"without permanently converting their export earnings into Taka.

Previously, banks were permitted to provide the facility only against funds held in exporters' 30-day pool and Export Retention Quota (ERQ) accounts. The latest directive significantly broadens the scheme by allowing swaps against unencumbered balances maintained in foreign currency accounts of exporters operating in specialised zones, giving businesses greater flexibility in managing cash flow and working capital.

Bangladesh Bank said the expanded facility amends the provisions of FE Circular No. 41 issued on November 3, 2025, while complementing FE Circular No. 31 dated July 1, 2025, which authorised industrial enterprises in specialised zones to maintain the foreign currency accounts that are now eligible for the swap arrangement.

The central bank has instructed all AD banks to immediately notify their clients of the revised policy. It added that all other provisions of the earlier circulars will remain unchanged.