The central bank of Bangladesh, Bangladesh Bank, has announced a significant financial facility aimed at domestic shipping companies and airlines that maintain international operations. Under a newly issued directive, these transport sector corporations are now permitted to invest the surplus balances of their Foreign Currency (FC) accounts into interest-bearing or profit-yielding term deposits with their respective Authorised Dealer (AD) banks.
This major policy shift was officially enacted on Sunday, 24 May, through a circular promulgated by the Foreign Exchange Policy Department of Bangladesh Bank. According to the regulatory authority, the principal objective of this decision is to stimulate the inflow of foreign remittances into the country and to encourage companies operating within these two vital logistical sectors to route their global earnings directly through official, domestic banking channels.
Key Operational Guidelines and Interest Mechanisms
In accordance with the specific provisions outlined in the newly released circular, the outstanding balances held within the foreign currency accounts of these eligible corporations can now be converted into renewable Foreign Currency Term Deposits (FC Term Deposits). These deposits must be maintained in approved foreign currencies at the respective Authorised Dealer banks.
The structural and operational framework governing these financial arrangements includes the following distinct components:
Tenor of Deposits: The maturity periods and duration of these term deposits will be determined in strict adherence to standard commercial banking principles and existing regulatory frameworks.
Determination of Rates: The specific interest or profit rates applicable to these accounts will be mutually negotiated and settled between the respective commercial banks and their corporate clients, based entirely on the established banker-customer relationship.
Payment Currency: The central bank has explicitly mandated that any interest or profit generated from these term deposits cannot be withdrawn or retained in foreign currency. Instead, the accumulated earnings must be converted and disbursed in local currency—the Bangladeshi Taka (BDT)—calculated according to the prevailing market spot rate at the exact time of the transaction.
Regulatory Background and Evolution of Policy
This latest directive represents a major expansion of the regulatory framework that was originally established a few years prior. On 10 April 2023, Bangladesh Bank had issued a foundational circular that initially permitted local shipping operators and airlines with global operations to open and operate active Foreign Currency accounts.
Under the strict stipulations of that 2023 policy, the utilisation of these accounts was heavily restricted. The accounts were permitted solely for the purpose of settling essential international operational expenditures, such as port fees, fuel charges, and overseas maintenance costs.
The previous policy framework did not provide any mechanism or avenue for these companies to earn investment returns, interest, or profits on their surplus foreign currency balances. Consequently, substantial volumes of foreign currency remained uninvested and dormant within the domestic banking infrastructure, yielding no financial return for the operating entities.
Economic Context and Expected Industrial Impact
Industry analysts and sector specialists note that the maritime and aviation industries in Bangladesh are experiencing consistent growth, alongside a widening operational footprint in international markets. The previous inability to generate yields on surplus funds often meant that there was very little financial incentive for companies to retain substantial foreign liquidity within local accounts, with some preferring to manage funds through offshore arrangements where legally permitted.
The latest regulatory intervention by the central bank is specifically designed to address this limitation. By offering a structured return on these idle balances, the policy seeks to incentivize logistics and aviation firms to repatriate a greater proportion of their offshore and international earnings through official, legally recognized banking channels inside Bangladesh.
Bangladesh Bank has explicitly clarified that all other relevant instructions, operational procedures, and compliance guidelines detailed in the preceding 2023 circular shall remain entirely unchanged and in full effect. Furthermore, all Authorised Dealer banks have been instructed to immediately disseminate the details of this new financial facility to their respective corporate clients to ensure prompt implementation across the sector.