FEPD Circular No. 01: Application of spread between buying and selling of foreign currency

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No. 01 Date: January 02, 2025 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Application of spread between buying and selling of foreign currency Please refer to FE Circular No. 38, dated December 31, 2024 regarding the modalities to manage exchange rate regime. 02. Application of unusual spreads by Authorized Dealers (ADs) between buying and selling rates of foreign currency results in discriminatory currency arrangements, and multiple currency practices. To streamline the practices, it has been decided that ADs may apply a maximum of 1.00 (one) Taka as spread between buying and selling. In this context, each AD shall apply spot rate uniformly irrespective of the size for all buying transactions of a business day. Similarly, uniform spot rate shall also be maintained for all selling transactions of a business day. 03. Exchange rates of a Business day need to be displayed on digital screens/display boards visible to customers of ADs as well as on the top of their websites. 04. ADs shall report the day's transactions to Bangladesh Bank as per paragraph 26, chapter 2 of the Guidelines for Foreign Exchange Transactions-2018, Vol-2, FE Circular letter No. 06/2022 and paragraph 3 of FE Circular No. 38/2024. 05. ADs are advised to instruct all their AD branches and central processing centers for meticulous compliance with the above instructions. Non-compliance shall be subject to punitive actions including financial penalties under relevant regulations, including but not limited to the Foreign Exchange Regulation Act, 1947 and the Bank Company Act, 1991. Please bring the contents of this circular, effective immediately, to the notice of your relevant clientele. Yours faithfully, (Monoar Uddin Ahmed) Director (FEPD) Phone: 9530119