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

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