Bangladesh Bank consolidates FX rules and reaffirms virtual-asset restrictions

Bangladesh Bank issued FEPD-2 Circular No. 09 on 29 October 2026, consolidating foreign exchange management and operational rules for all authorised dealers (ADs). Issued under section 20(3) of the Foreign Exchange Regulation Act 1947, the circular repeals existing instructions in the Guidelines for Foreign Exchange Transactions 2018, Volume 1 and subsequent circulars, except the monthly reporting instructions in Volume 2. It remains valid for one year from its issue date.

For ADs, the circular creates a single operating reference but preserves detailed reporting, record-keeping and risk-control duties. Transactions of at least $100,000, or the equivalent, must be reported through Bangladesh Bank’s Foreign Exchange Market module twice on each business day: by 11:30am for transactions completed by 11am, and by 5:30pm for transactions from 11am to 5pm.

Virtual-asset restrictions remain in force

Part H carries forward the restriction on virtual assets and virtual currencies, including activities facilitating their exchange, transfer or trading. Bangladesh Bank first imposed the restriction through FE Circular No. 24 on 15 September 2022. It was subsequently reiterated for scheduled banks and financial institutions through BRPD Circular Letter No. 40 of 12 October 2022 and DFIM Circular Letter No. 24 of 10 November 2022.

The consolidated circular says those restrictions “remain in force” and requires the concerned parties to comply with Bangladesh Bank’s applicable instructions. It therefore preserves the existing prohibition rather than setting out a new virtual-asset licensing or reporting framework.

The circular also requires ADs to display each business day’s exchange rates on customer-visible screens or boards and at the top of their websites. Banks must calculate their overbought or oversold foreign exchange position daily, report it through Bangladesh Bank’s web portal on the next business day and retain signed hard-copy statements for at least five years.

Nostro-account controls include compliance with Bangladesh Bank and other competent authorities’ anti-money laundering and counter-terrorist-financing requirements. Banks must submit quarterly reviews of unreconciled entries, prepared by officials independent of the accounts’ transaction and approval processes. June and December reviews must include an external auditor’s certification, while debit entries unreconciled for more than six months must be provisioned for according to Bangladesh Bank’s schedule.

Forward transactions and commodity hedging

Forward sales may be undertaken only against a bona fide customer or counterparty-bank need, with the AD covering the resulting risk “within the shortest possible time”. Swap transactions may be used for risk coverage and cash-flow mismatches, but ADs are advised not to take speculative positions. Documents relating to forward and swap transactions must be retained for Bangladesh Bank inspection, and interbank transactions must be reported daily.

Part G also incorporates Bangladesh Bank’s 13 September 2026 commodity-hedging rules. ADs may facilitate futures, forwards, swaps and options for eligible importers, including importers outside designated specialised zones, where there is a verifiable underlying import exposure. The hedge’s notional amount and tenor must not exceed the underlying transaction, and any written option must be fully covered by that exposure.

An AD intending to offer those commodity-hedging services must first obtain Bangladesh Bank’s concurrence by submitting board-approved product specifications and standard operating procedures. The circular is valid until 29 October 2027, subject to further instructions issued during that period.