FE Circular No. 07: Relaxation of Regulatory Requirement in Offshore Banking Operations

Foreign Exchange Policy Department Bangladesh Bank Head Office Motijheel Dhaka-1000 www.bb.org.bd

FE Circular No. 07 Date: 29 February 2024 Managing Director/CEOs All Scheduled Banks in Bangladesh

Dear Sirs, Relaxation of Regulatory Requirement in Offshore Banking Operations Please refer to Para-7 of BRPD Circular Letter No. 31 dated 18th June 2020 and FEID Circular Letter No. 07 dated 28th December 2023 on the captioned subject. 02. To further facilitate the offshore banking operations, it has been decided that banks are not required to maintain any Cash Reserve Ratio (CRR) with Bangladesh Bank for offshore banking operations (copy of the notification enclosed). 03. It has also been decided that, Offshore Banking Operations (OBOs) are allowed to place funds to their Domestic Banking Units (DBUs) without limiting to settle the import payment of capital machinery, industrial raw materials, imports by the government and other permissible payment obligations as per prevailing foreign exchange rules and regulations . 04. You are advised to bring the contents of this circular to the notice of your Offshore Banking Operations. Yours faithfully, (Sharmin Rahman) Additional Director Phone: 9530487