Merchants allowed retaining 15pc of foreign currency earnings in FC accounts

 
Bangladesh Bank (BB) has allowed merchants, including hotels, resorts, restaurants, shopping malls and retail outlets, to retain up to 15 percent of foreign currency (FC) receipts in FC accounts against payments made by foreign visitors through internationally issued cards and other admissible payment instruments.

The central bank issued a circular on Sunday to all authorised dealers (ADs) in foreign exchange, introducing the facility to encourage sales of goods and services to foreign visitors in Bangladesh.

According to the circular issued by the Foreign Exchange Policy Department-2, the remaining 85 percent of the foreign currency receipts must be encashed into Bangladeshi Taka. 

The foreign currency retained in the accounts can be used to settle legitimate foreign exchange obligations arising from current account transactions, including payments through international cards, in accordance with the relevant Bangladesh Bank circular issued on September 30, 2026, according to BSS report. 

The circular also instructed authorised dealers to ensure the deduction and payment of applicable taxes and value-added tax (VAT).

Banks must ensure that the concerned merchants have appropriate arrangements to accept payments through internationally issued cards and other admissible payment instruments.

The central bank further directed authorised dealers to comply with customer identification (KYC), anti-money laundering and combating the financing of terrorism (AML/CFT) standards, as well as reporting requirements to Bangladesh Bank.