FEPD Circular No. 38: Exchange Rate Management Regime

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd

FE Circular No. 38

Date: December 31, 2024

All Authorized Dealers in Foreign Exchange in Bangladesh

Dear Sirs,

Exchange Rate Management Regime

Please refer to FE Circular No. 09 dated May 08, 2024, regarding the exchange rate arrangement by Bangladesh Bank.

2. This is to note that Authorized Dealers (ADs) are allowed to purchase and sell foreign currency from/to their customers and other dealers at freely negotiated rates.

3. Effective from January 5, 2025, ADs shall provide information twice on each business day for all foreign exchange transactions at or above 1.00 lac US dollar or equivalent. ADs shall, before 11:30 am, report for transactions executed till 11:00 am. In the afternoon, ADs shall provide information of transactions executed from 11:00 am to 5:00 pm before 5.30 pm. The template for reporting the transactions will be provided by Bangladesh Bank.

4. Effective from January 12, 2025, Bangladesh Bank will publish a daily reference benchmark exchange rate, defined as the weighted average of freely quoted exchange rates in market transactions with customers and other dealers. To facilitate the benchmark reference exchange rate, the corresponding guideline is available in Bangladesh Bank website.

5. Bangladesh Bank has launched a new Foreign Exchange Interventions strategy (available in Bangladesh Bank website) to ensure the smooth functioning of existing exchange rate regime, with a view to transitioning to the full exchange rate flexibility in the near-term.

Yours faithfully,

(Monoar Uddin Ahmed) Director (FEPD) Phone: 9530119