The Foreign Exchange Policy Department (FEPD) of Bangladesh Bank has issued three new directives concerning foreign currency exchanges for private travel entitlements through licensed money changers. The notification, signed by Monoar Uddin Ahmed, Director of FEPD, was issued on Tuesday, outlining updated regulations aimed at facilitating outbound travellers. Under the Guidelines for Foreign Exchange Transactions (GFET)-2018, Volume 1, licensed money changers have been authorised to sell foreign currency notes, coins, and travellers' cheques (TCs) to Bangladeshi nationals travelling abroad. This is in accordance with their annual private travel entitlement, subject to a maximum limit of 1,000 US dollars or its equivalent in cash. The limit has now been enhanced to 2,000 US dollars or its equivalent in cash, doubling the previous allowance Bangladesh Bank provides liquidity guarantee of Tk 6,585 crore to 7 banks For Hajj pilgrims, licensed money changers are to follow the government’s Hajj policy regarding the release of foreign currency. The notification also says all other related instructions would remain unchanged. This move is expected to ease financial transactions for outbound travellers and ensure better compliance with foreign exchange regulations.

Bangladesh Bank (BB) Governor Dr Ahsan H Mansur said that the central bank will not allow any industries to be closed for the fault of its entrepreneurs. He said the institutions are national assets. Here, arrangements will be made to run the institutions whether the actual owner is there or not. Because many people are working in these institutions, they (companies) have a relationship with banks as they have a relationship with manufacturing, which cannot be separated. The governor said this while speaking at a press conference at the central bank headquarters on Monday to brief journalists on the latest update on the banking sector. He said Islami Bank is a turnaround and the bank collected around Tk5000 crore under the new board of directors restructured by the BB. Regarding S Alam and Beximco governor said, “We have to look at it from a different perspective. Individuals and institutions are different. But we will also try our best to prevent fund diversion.” Islami Bank to issue new shares, sell S Alam Group's seized ones  “I will not allow any industry to be shut down. It is very easy to shut down an industry, but building it is difficult and takes time. The country benefits from the institutions. So, we don't want to fail. We will not allow institutions to fail,” he pointed out. Meanwhile, the governor said, “Haste or emotion excites people for a short time. But running the country with emotions does not bring good results. I have to be realistic, and bring about change by formulating the right policies and implementing them.”  

Bangladesh’s foreign exchange reserves fell below the $20 billion mark after the country paid $1.5 billion in liabilities to the Asian Clearing Union (ACU) on November 10. The reserves now stand at $18.19 billion, according to the Bangladesh Bank, calculated under the IMF’s BPM6 standard. Husneara Shikha, Executive Director and Spokesperson of Bangladesh Bank, confirmed the updated figures on Tuesday, noting the reserve decline after settling the ACU bill. Forex reserves on the rise: BB Governor assures stability Data from Bangladesh Bank shows that reserves briefly touched $20 billion on November 7, bolstered by remittance and exports. However, large payments like the ACU liability significantly impacted the balance. Earlier, in September, a similar payment of $1.36 billion for July-August ACU bills reduced reserves to $19.44 billion. In recent months, Bangladesh witnessed over $6 billion in remittances and $10 billion in export earnings, which provided some stability. Additionally, reduced pressure to open import Letters of Credit (LCs) allowed banks to maintain sufficient dollar liquidity, while inflows from foreign loans and central bank dollar purchases further contributed to reserves. Bangladesh Bank tracks reserves in three categories. Total reserves includes various funds, IMF-compliant reserves are calculated under the BPM6 standard, and usable reserves reflect readily available foreign exchange. For the first time in the country's history, foreign exchange reserves crossed the $48 billion mark in August 2021. However, increased demand in the post-Covid economy and the Russia-Ukraine war led to dollar sales from reserves, reduced foreign loans and investment, and increased repayment of previous liabilities.

Bangladesh Bank Governor Dr. Ahsan H. Mansur on Thursday said that implementing the government’s monetary policy aimed at curbing inflation will require 12 to 18 months. “After tightening the monetary policy, it takes 12 to 18 months to bring down the inflation rate. So, we have to be patient,” Dr. Mansur said during a press briefing following a meeting on inflation at the Finance Ministry, chaired by Finance Adviser Dr. Salehuddin Ahmed. The governor clarified that the central bank’s approach is focused on controlling inflation rather than reducing the overall price level. “We manage inflation; we don’t aim to lower the price level itself. No country seeks to reduce prices to avoid the risk of deflation,” he explained. Inflation in Bangladesh went up in Oct Deflation, a sustained drop in the price level of goods and services, can initially seem beneficial as money gains purchasing power. However, prolonged deflation can hamper economic growth and often arises during periods of economic instability. Its impact, Dr. Mansur noted, can have both positive and negative effects on the economy. Addressing public expectations, Dr. Mansur urged citizens to remain patient as the policy gradually takes effect. “This isn't something that can be achieved in two to three months. At best, we might see results in 12 months, but 18 months is a more realistic timeframe,” the Bangladesh Bank governor said. BB will ask banks not to impose LC margin on essentials import until Ramadan

Bangladesh has witnessed a notable surge in remittance inflow from July to October this year, as compared to the same period last year, according to data provided by the Bangladesh Bank. The total remittance inflow for this period stands at $8.938 billion, marking a sharp rise from the $6.878 billion recorded between July and October 2023. In October 2024 alone, the remittance inflow reached an impressive $2.395 billion, significantly higher than the $1.971 billion received in October 2023. The increase is attributed to the growing number of Bangladeshi workers abroad, improved remittance channels, and seasonal inflows as expatriates send funds to support their families in Bangladesh. Surge in remittance: $1.94 billion sent  through legal channels till Oct 26 A record-breaking figure was also observed on October 31, when remittances reached $98 million in a single day. Economists have highlighted the positive impact of these figures, noting that robust remittance inflows can boost domestic consumption and help the country mitigate the impacts of external economic pressures. Bangladesh Bank officials are optimistic that sustained remittance inflows will support ongoing efforts to strengthen the nation's economic standing.  

In an interview with the Financial Times, Bangladesh Bank Governor Ahsan Mansur accused powerful business tycoons of siphoning $17 billion out of the banking sector during the Sheikh Hasina regime. He alleged that members of the Directorate General of Forces Intelligence (DGFI), the country’s military intelligence agency, facilitated the takeover of major banks, which led to the systematic transfer of funds out of Bangladesh. According to Mansur, around Tk 2 lakh crore or $16.7 billion was extracted through methods such as loans to new shareholders and inflated import invoices, reports Financial Times. NASSA Group owner Nazrul Islam Majumdar being investigated for multi-million dollar money laundering scheme This was the biggest robbing of banks by any international standards, said Mansur. He asserted that the state-sponsored nature of the fraud would not have been possible without intelligence officials pressuring bank CEOs into compliance. The governor specifically named Mohammed Saiful Alam, the founder and chairman of the industrial conglomerate S Alam Group, as being deeply involved in the scheme, claiming that at least $10 billion was “siphoned off” from the banking system with the assistance of DGFI. “Every day they were granting loans to themselves,” Mansur noted. However, the S Alam Group, through law firm Quinn Emanuel Urquhart & Sullivan, denied the allegations, calling them unfounded. The group’s statement described the interim government's campaign against several leading businesses as a violation of due process, which undermined investor confidence and law and order in Bangladesh. Sheikh Hasina fled to India on August 5, and her current location is unknown. Her tenure was plagued with accusations of vote rigging, opposition repression, and widespread corruption. The interim government, now led by Nobel laureate Muhammad Yunus, has vowed to retrieve the funds that were allegedly misappropriated under her administration, the report said. Mansur disclosed that he had sought international assistance, including from the UK, to investigate the overseas assets of Sheikh Hasina’s associates. He recounted that during her regime, intelligence officials forced bank board members to sell their shares to Saiful Alam at gunpoint. They "hijacked" board members from their houses, he said, adding that one bank after another underwent the same coercive takeovers, added the report.

Bangladesh Bank has introduced new measures to simplify imports for industrial establishments, allowing them to proceed without a traditional letter of credit (LC) through a letter of agreement, a significant shift aimed at boosting trade flexibility. In a circular issued Thursday by the central bank’s Foreign Exchange and Policy Department, the new directives will primarily benefit imports into specialized economic zones such as the Export Processing Zones (EPZs) and Economic Zones (EZs). The circular also outlines provisions for short-term import credit, ensuring continued access to foreign goods under standard arrangements. Bangladesh Bank eases export rules for e-commerce products Under the new system, importers can independently secure short-term foreign loans to settle their import liabilities. Furthermore, foreign lenders will be permitted to issue LCs, standby letters of credit (SBLC), or guarantees to suppliers, with both the principal loan amount and any associated interest to be repaid according to the agreed terms of the loan. In addition, Bangladesh Bank has granted general approval for corporate, personal, or third-party guarantees to facilitate short-term import credit. This gives importers more flexibility in managing their financial obligations. The circular specifies that commercial imports under the agreement will benefit from a short-term foreign credit facility with a repayment period of up to 60 days, offering an additional layer of support to industrial enterprises engaged in foreign trade. Industry insiders have welcomed the move. They highlighted that the new system removes ambiguities related to third-country imports or third-country LCs.

Just like government employees, bank officials and staff in the four city corporations of Bangladesh are now required to submit their tax returns online. The Banking Regulations and Policy Department of Bangladesh Bank gave the instruction on Wednesday. Referring to a special order issued by the National Board of Revenue (NBR) on October 22, the announcement says all bank employees will have to follow the instructions. All managing directors and chief executive officers of scheduled banks operating in the country have been instructed to ensure that their employees adhere to the online tax return submission requirement. Read: Budget 2024-25: Businesses to face fines for not displaying tax return proof The central bank’s notice explained that this directive has been issued under the authority granted by Section 45 of the Banking Companies Act, 1991. To facilitate easier compliance for the 2024-2025 tax year, the NBR launched an online return submission system on September 9. Individual taxpayers can now conveniently prepare and file their returns online via the platform at www.etaxnbr.gov.bd. As of October 21, the number of returns filed online has exceeded 100,000.

The Bangladesh Bank (BB) has once again raised its policy interest rate, pushing it up to 10% in a fresh attempt to tackle inflation by withdrawing excess liquidity from the market. The decision, outlined in a circular issued on Tuesday, will take effect from 27 October. The new policy rate sees a 50 basis point increase from its previous level of 9.50%, meaning that the interest rate at which commercial banks borrow from the central bank will also rise, leading to an overall rise in borrowing costs across the financial system. Central banks typically resort to such measures as part of efforts to cool down inflation and stabilise the broader economy. By making borrowing more expensive, consumer spending and investment tend to slow down, which in turn, helps in reducing inflationary pressures. This latest move by the Bangladesh Bank aligns with the global trend of tightening monetary policy, as central banks worldwide continue to battle surging inflation. Bangladesh Bank raises commemorative gold coin prices by Tk10,000 In addition to the increase in the policy interest rate, the central bank has also raised the upper limit of the standing lending facility (SLF) rate by 50 basis points, moving it from 11% to 11.50%. The lower limit of the standing deposit facility (SDF) rate has similarly been increased, rising from 8% to 8.50%. These adjustments reflect the central bank’s commitment to maintaining economic stability amid challenging financial conditions.

Bangladesh received $1.53 billion in remittances during the first 19 days of October 2024, according to the latest data from Bangladesh Bank. This marks an average inflow of $87 million per day. In comparison, remittances in the same period of September totaled $1.47 billion, indicating a significant boost in October’s figures. Two-day ‘Bangladesh Remittance Fair’ to start on Oct 20 in NY Breaking down the sources, the remittances came from various banking channels: State-owned banks contributed $400.8 million. Specialized banks accounted for $78 million. Private banks led the way, bringing in $1.0496 billion. Foreign bank branches in Bangladesh facilitated $4.10 million in transfers. Additionally, Bangladesh Bank reported that from October 13 to 19, expatriates sent $546.30 million, while $561.9 million was received between October 6 to 12, and $424.7 million in the first five days of the month.