BB doubles exporters’ foreign currency retention limit

Bangladesh Bank (BB) doubled the foreign currency retention limit for exporters with high import content, allowing them to retain 15 per cent of their repatriated Free on Board (FOB) export proceeds in their Exporters' Retention Quota (ERQ) accounts.

The central bank announced the decision through issuing a circular on Wednesday, with immediate effect. 

Authorised Dealer (AD) banks have been instructed to inform their exporter clients and implement the revised directive without delay.

Under the previous provision, exporters in the category were permitted to retain 7.5 per cent of their repatriated export earnings in ERQ accounts. 

The latest move raises that ceiling to 15 per cent, providing businesses with greater access to foreign exchange for meeting operational requirements.

AD branches have been instructed to inform their exporter clients and implement the revised directive sans delay

Officials said the revision is intended to ease foreign currency management for exporters that depend heavily on imported raw materials, intermediate goods, machinery, and other production inputs. 

The enhanced retention facility will enable exporters to finance eligible import-related expenses directly from their ERQ accounts, reducing reliance on the domestic foreign exchange market and helping lower transaction costs.

Bangladesh Bank clarified that the amendment relates only to the retention percentage. All other provisions of paragraph 76 of FE Circular No. 31, issued on July 31, 2025, will remain unchanged.

Exporters are expected to welcome the measure, describing it as a timely policy support for industries with high import intensity. 

They believe the higher retention limit will improve cash-flow management, strengthen foreign exchange liquidity at the firm level, and enhance the competitiveness of Bangladeshi products in global markets.

The latest policy comes as the central bank continues efforts to facilitate external trade, improve foreign exchange management, and support sustained export growth amid a challenging global economic environment.