Regulatory Alerts2022-08-01
Added
FEPD Circular No. 19: Interest rate ceiling on Non-resident Foreign Currency Deposit (NFCD) Accounts
The document establishes annual interest rate ceilings for Non-resident Foreign Currency Deposit (NFCD) accounts based on the benchmark reference rate in the relevant currency. For deposits with a period of one year up to three years, the ceiling is set at the benchmark reference rate plus 2.25 percent, while deposits above three years up to five years are capped at the benchmark reference rate plus 3.25 percent. These rates apply to all Authorized Dealers in foreign exchange in Bangladesh to ensure uniformity with previous instructions regarding fresh deposits.
Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd
FE Circular No. 19 Date: August 01, 2022
All Authorized Dealers in foreign exchange in Bangladesh
Dear Sirs,
Interest rate ceiling on Non-resident Foreign Currency Deposit (NFCD) Accounts
Please refer to FE Circular No. 15, dated July 17, 2022 regarding fresh deposits under NFCD accounts without reference to eurocurrency interest rate. To bring uniformity, it has been decided to set annual interest rate ceiling along with benchmark reference rate in the relevant currency of deposits as outlined below:
| Period of deposit | Ceiling rate |
|---|---|
| 1 year and up to 3 years | Benchmark reference rate + 2.25 percent |
| Above 3 years and up to 5 years | Benchmark reference rate + 3.25 percent |
Other instructions in this regard shall remain unchanged. Please bring the content of this circular to the notice of eligible customers.
Yours faithfully,
(Md. Sarwar Hossain) Director (FEPD) Phone: 9530123