Written by The Banking Post
The central bank has introduced a unified framework for foreign exchange transactions related to transportation services, aiming to simplify compliance and remove regulatory overlaps.
In a circular issued on May 7, 2026, Bangladesh Bank consolidated multiple earlier instructions into a single guideline governing outward remittances for transport-related activities. The move is designed to streamline operations and improve clarity for businesses dealing in cross-border payments.
The directive remains anchored in the Foreign Exchange Regulation (FER) Act, 1947, and has been issued under its Section 20(3). It will remain effective for one year, with any new instructions to be read alongside the updated framework.
The consolidated guidelines cover a broad range of activities, including ticket issuance, freight collection for international transport, and foreign exchange dealings involving airlines and shipping companies. Transactions by national entities such as Biman Bangladesh Airlines and Bangladesh Shipping Corporation are also included.
Private sector operators—ranging from airlines and shipping firms to courier services and freight forwarders—have been brought under clearer rules. The circular also sets out procedures for maintaining foreign currency accounts for transport operators engaged in international services.
In addition, updated provisions have been introduced for tour operators handling foreign exchange for outbound travel, reflecting the sector’s growing role in cross-border services.
Business insiders say the move will reduce ambiguity, improve compliance efficiency, and facilitate smoother remittance operations, while ensuring adherence to foreign exchange regulations.
