FEID Circular Letter No. 04: Placement of fund from Offshore Banking Operations to Domestic Banking Units

Domestic Banking Units (DBUs) are authorized to receive funds from any Offshore Banking Operations (OBOs) up to 40% of their total regulatory capital to settle permissible payment obligations under prevailing foreign exchange rules. This facility is valid until December 31, 2023. Previously, OBOs were allowed to place funds with a limit not exceeding 25% of the bank's total regulatory capital for specific import payments, a provision valid until June 30, 2023.

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Foreign Exchange Investment Department
Bangladesh Bank
Head Office
Dhaka www.bb.org.bd
FEID Circular Letter No. 04 Date: 9 April, 2023 Head Offices/Principal Offices of all Authorized Dealers in Bangladesh Dear Sirs, Placement of fund from Offshore Banking Operations (OBOs) to Domestic Banking Units (DBUs) Please refer to FEID Circular Letter No. 02 and 01 dated 14 July, 2022 and 04 January, 2023 on the captioned subject.
02. As per instructions contained in these circular letters, Offshore Banking Operations
(OBOs) are allowed to place funds to their DBUs with a limit not exceeding 25% of total regulatory capital of the bank to settle the import payment of capital machinery, industrial raw materials and imports by the government. This facility will remain valid till June 30, 2023.
03. To bring further flexibility for external transactions, DBUs may receive funds from
any OBOs up to 40% of their total regulatory capital to settle permissible payment obligations as per prevailing foreign exchange rules and regulations. The relaxation shall remain valid till 31 December, 2023. You are advised to bring the contents of this circular letter to the notice of your Offshore Banking Operations. Yours faithfully, (Husne Ara Shikha) Director (FEID) Phone: 9530144

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Timeline

Amended 1 time · last 2023-12-28

2023-12-28BBFEID Circular Letter No. 07: Placement of fund from Offshore Banking Operations (OBOs) to Domestic Banking Units (DBUs)amends

Source: Bangladesh Bank — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works