Written by The Banking Post
Bangladesh Bank has allowed exporters to obtain Taka liquidity by swapping their foreign currency (FC) funds with banks. A circular issued on November 03, 2025 authorizes Authorized Dealer (AD) banks to enter into foreign currency–Taka swap arrangements with exporters against balances held in their 30-day pools and Exporters’ Retention Quota (ERQ) accounts.
According to the circular, such a swap constitutes a spot purchase of foreign currency against Taka, accompanied by a simultaneous forward reversal at an agreed rate and maturity, using exporters’ own foreign currency holdings. The tenor of the swap shall not exceed the expected utilization date of ERQ balances and is capped at 30 days for funds in 30-day pools. Settlements must take place at maturity.
The central bank further clarified that swap points may be set on market-reflective or cost-based interest/profit differentials between the two currencies. These swap transactions will not be treated as loans or financing facilities extended to customers by AD banks. The Taka funds obtained under the arrangement need to be used solely for bonafide working capital needs related to export operations, and the facility cannot be used for speculative purposes.
Industry insiders said the initiative will ease short-term liquidity pressure for exporters without requiring conventional Taka-denominated export finance from banks, while also encouraging market-based liquidity management through FX derivatives.
