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BB eases forex release rules

Dealers now can determine multiple-year private travel entitlements


FE REPORT | September 24, 2021 00:00:00


Authorized dealer (AD) banks now can endorse foreign exchange for private travel for multiple years, but not exceeding the set limit per annum.

The flexibility on account of private-travel purpose comes as the central bank further simplified its regulations on the release of foreign exchange to travelers, officials said.

Under the relaxation, the authorized dealer banks are allowed to endorse/set travel entitlements to Bangladeshi nationals holding international cards for multiple years up to the validity of passports, according to a notification issued Thursday by the Bangladesh Bank.

In this context, the AD banks need to observe specific conditions which include that yearly use will not exceed the set limit at US$ 12,000.

"Unused quota will not be brought forward to following years," the notification says about the latest of a series of updating of the forex regime.

"We've relaxed our rules aiming to facilitate travelers to be flexible in use of travel entitlements," a BB senior official told the FE while explaining the main objective of the change.

He also said the central bank has continuously been updating rules and regulations to facilitate foreign-exchange transactions.

However, the central bank imposed restrictions on use of multiple-year travel entitlement for individuals proceeding abroad for employment/immigration or study purposes.

"Supplementary cardholders may avail this facility against their own travel entitlement with endorsement on their own passports," it noted.

The time limit for annual travel quota will be counted from January 01 to December 31.

In case the travel involves subsequent year, travel entitlement will be counted for the particular year concerned.

In that case, post-facto endorsement will be required for the subsequent year unless multiple years' endorsement facility has not been used.

Cardholders can use an excess amount exceeding travel quota for unavoidable but bonafide grounds.

The excess amounts can be adjusted by debit to RFCD (resident foreign currency deposit) accounts of concerned travelers.

Up to US$500 or equivalent can be adjusted against the travel quota of the following year, according to the notification.

The central bank also asked the banks to maintain adequate arrangements, including a monitoring mechanism, to implement the new rules.

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