Remittances Through Exchange Houses Can Be Deposited Directly in Foreign Currency

Bangladesh Bank has allowed foreign currency remittances received through foreign exchange houses and international money transfer operators (IMTOs) to be deposited directly into Private Foreign Currency (PFC) and Non-Resident Foreign Currency Deposit (NFCD) accounts.

The decision aims to increase foreign currency savings and facilitate remittance recipients. In a circular issued on Wednesday, the central bank said the measure was introduced to make the flow of foreign currency deposits easier and more efficient while ensuring compliance with existing foreign exchange regulations.

Under existing provisions, foreign currency received as inward remittances through banking channels can already be deposited into PFC and NFCD accounts.

Under the new arrangement, remittances sent through foreign exchange houses and IMTOs can also be deposited into such accounts, subject to eligibility and compliance with applicable foreign exchange control regulations.

The move will provide greater convenience to remittance recipients and expatriate Bangladeshis in maintaining foreign currency accounts. It will also expand opportunities for foreign currency savings and provide greater flexibility in using remittances received through legal channels.

The facility is expected to particularly benefit expatriate Bangladeshis who do not maintain personal bank accounts in their countries of employment. They will now be able to keep part of their overseas earnings in Bangladesh in foreign currency.