RegAlert
2023-09-24

Added · Updated

FEPD Circular No. 16: Forward sale and purchase in foreign exchange

Authorized Dealers in Foreign Exchange in Bangladesh may apply a forward premium not exceeding SMART plus 5 percent per annum with declared spot rates for forward dealings with customers and relevant counterparties. This directive applies to forward sales and purchases in foreign exchange executed against the bonafide need of customers and relevant counterparties. Other 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 No. 16 Date: September 24, 2023
All Authorized Dealers in
Foreign Exchange in Bangladesh.
Dear Sirs,
Forward sale and purchase in foreign exchange Please refer to paragraph 8, chapter 4 of Guidelines for Foreign Exchange Transactions-2018, Vol-1 and its subsequent circular(s) in terms of which Authorized Dealers (ADs) are allowed to execute forward sales and purchases in foreign exchange against bonafide need of customers and relevant counterparties.
02. To maintain orderly discipline in foreign exchange market, it has been decided that
ADs may apply forward premium not exceeding SMART + 5 percent per annum with declared spot rates for forward dealings with customers and/or relevant counterparties
03. 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Lineage: Superseded

Guideline of 2018Guideline of 2018FEPD Circular No. 16: Forwardsale and purchase in foreign …2023-09-24 · this documentFEPD Circular No. 16: Forward sale and purchase in foreign exchange (2023-09-24)Forward sale and purchase in fo…2025Forward sale and purchase in foreign exchange (2025-01-26)FEPD Circular Letter No. 12: Fo…2023FEPD Circular Letter No. 12: Forward sale and purchase in foreign exchange (2023-09-26)
amendssupersedesissued underrefers toproposed or not in RegAlertarrows run from the older text to the one that changes it

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Amended 1 time · last 2025-01-26

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

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