FEPD Circular Letter No. 12: Forward sale and purchase in foreign exchange

Authorized Dealers in Foreign Exchange in Bangladesh may apply a forward premium not exceeding SMART+5 percent per annum with declared spot rates only for forward sales for import payments with a tenure not exceeding three months. For early settlement of such forward contracts, the premium must be adjusted based on the actual tenure. Other existing instructions regarding forward transactions remain unchanged.

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BANGLADESH BANK
(Central Bank of Bangladesh)
Head Office
Motijheel, Dhaka-1000
Bangladesh www.bb.org.bd
Foreign Exchange Policy Department
FE Circular Letter No. 12 Date: September 26 , 2023 All Authorized Dealers in Foreign Exchange in Bangladesh. Dear Sirs, Forward sale and purchase in foreign exchange Please refer to FE Circular No. 16 of September 24, 2023 in terms of which ADs may apply forward premium not exceeding SMART+5 percent per annum with declared spot rates for forward dealing.
02. This is to clarify that the above forward premium shall only be applied in forward
sale for import payments not exceeding for 3 (three) months.
03. For early settlement of forward contract, the premium needs to be adjusted for actual
tenure.
04. Other instructions with regards to forward transactions shall remain unchanged.
ADs are advised to bring the contents of this circular to the notice of all concerned. Yours faithfully,

(Md. Sarwar Hossain)
Director (FEPD)
Phone: 9530123

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Lineage: Superseded

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Timeline

Amended 1 time · last 2025-01-26

2025-01-26BBForward sale and purchase in foreign exchangesupersedes

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