Exchange houses must mention forex sources, conversion rate

Overseas exchange houses will have to mention sources of foreign currencies, conversion rate and remitted amount in taka for each remittance transaction as per disbursement instructions sent to banks across Bangladesh.
To this effect, the central bank has amended policies to ensure transparency in transactions on inward remittance alongside encouraging the setting up of drawing arrangement between exchange houses abroad and banks operating in Bangladesh.
Under the amendments, the exchange houses will have to mention sources of foreign currencies, conversion rate and remitted amount in Bangladesh Taka (BDT) for each remittance transaction in the disbursement instructions sent to banks across Bangladesh.

However, authorized dealer (AD) banks will have to mention sources foreign currencies, conversion rate, disbursed remittance and cash incentive amount in BDT in the receipt/SMS/e-mail provided to the beneficiary during disbursement of remittance.
"We've amended our policies to ensure transparency in transactions in inward remittances," a senior official of the Bangladesh Bank (BB) told the FE while explaining the main objective  of the rules update.
He also said it would also help keep exchange rate of the local currency against the US dollar for purchasing inward remittances stable.
On the other hand, the security deposit and minimum balance requirements for 'Pre-Fund' modality will be withdrawn.
The AD banks are instructed to communicate with their foreign counterparts having drawing arrangements under such modality to adjust the security deposit maintained in Non-Resident Foreign Currency (NRFC) accounts through remittance disbursement.
Besides, the minimum balance requirement in Non-Resident Taka (NRT) account for 'Post-Fund' modality will be Tk 2.00 million instead of the taka-equivalent US$ 25,000.
The central bank has modified its policies to facilitate establishing drawing arrangement to encourage the flow of inward remittance through banking channel, according to officials.
Currently, more than 1550 drawing arrangements have been set up abroad to expedite the remittance inflow, they added.
The latest amendments will come into effect on February 01, 2025, according to two circular letters issued by the central bank on Sunday.
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