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The global economy is witnessing a profound transformation driven by digital trade. From
handcrafted goods to freelance services, millions of transactions now occur seamlessly across
borders through online platforms. Bangladesh, with its dynamic youth population, expanding digital
infrastructure, and growing base of online entrepreneurs, is steadily becoming part of this global e-
Commerce network. However, while participation is rising, the regulatory framework governing
foreign exchange transactions has not evolved at the same pace.

A modern, flexible, and inclusive regulatory environment is essential for Bangladesh to unlock the
full potential of its digital exporters. The existing framework—built around conventional trade
transactions—has served well for traditional exports. Yet, the rapid growth of small-value,
technology-driven cross-border commerce requires fresh thinking and updated mechanisms that align
with global digital trade practices.

Updating key areas of the current system would significantly enhance Bangladesh’s competitiveness,
make export payment settlement more efficient, and encourage small digital entrepreneurs to operate
within formal financial channels. Three areas stand out where such reform would bring immediate
benefit: transaction limits for e-Commerce exports, access to payment repatriation facilities, and the
recognition of new e-Commerce business models.

At present, e-Commerce exports from Bangladesh are permitted up to USD 500 per transaction
without the requirement of an EXP Form declaration. This threshold, though reasonable when first
introduced, no longer reflects the evolving realities of global e-Commerce. The value of online
orders has increased, and so has the diversity of products being traded across platforms. The current
ceiling, therefore, acts as a structural constraint, discouraging small enterprises from scaling their
operations or participating fully in international marketplaces.

A higher limit—for instance, USD 1,000 per transaction—would remove unnecessary administrative
frictions. Such an adjustment would not compromise regulatory discipline but would streamline
compliance for low-value transactions that pose minimal foreign exchange risk. Exporters would be
able to consolidate shipments, avoid splitting invoices, and handle transactions more efficiently. For
banks, it would reduce the procedural load associated with verifying and documenting numerous
micro transactions. For the central bank, it would promote a healthier flow of trade data, as exporters
would be more inclined to report through formal channels rather than bypassing them for
convenience.

This simple adjustment could have a profound multiplier effect. Thousands of small e-Commerce
sellers, artisans, etc. would find it easier to reach international customers directly. Administrative
costs would decline, competitiveness would improve, and the ecosystem of digital exports would
expand organically.

The second area requiring modernization involves receipt of export payments through licensed
digital channels. At present, only information technology and related service providers are allowed to
receive proceeds through Mobile Financial Service Providers (MFSPs) and Payment Service
Providers (PSPs). Other small exporters—particularly those selling physical products
online—remain excluded from these facilities, even though their trade volumes are modest and
perfectly suited to digital settlement systems.

Allowing e-Commerce exporters to receive small-value payments through regulated MFSPs and
PSPs would be a logical extension of Bangladesh’s successful digital finance journey. It would
integrate thousands of micro-merchants, freelancers, and rural entrepreneurs into the formal financial
system, bridging the last mile between the digital marketplace and the banking sector. This step
would not only simplify the repatriation of export earnings but also ensure that every dollar earned
abroad flows through traceable, compliant channels.

Bangladesh has already built one of the most advanced mobile financial ecosystems in the
developing world. Leveraging this network for cross-border trade would enhance accessibility for
small exporters who often find bank-based procedures time-consuming or geographically difficult.
Digital channels, when properly regulated, offer both convenience and transparency. They also
support financial inclusion by allowing entrepreneurs—especially women and youth in remote
areas—to receive international payments quickly and securely.

Moreover, expanding the use of MFSPs and PSPs would reduce the country’s reliance on informal or
unauthorized payment gateways, which currently handle a portion of cross-border e-Commerce
transactions. By enabling legitimate, technology-driven payment options under regulatory oversight,
Bangladesh can strike an effective balance between facilitation and control. This integration would
bring new foreign currency inflows into the formal system, improve data accuracy, and enhance the
credibility of small exporters engaging in global e-Commerce.

The third area calling for reform relates to broadening the definition of e-Commerce export models
within the foreign exchange regulatory framework. Current regulations primarily accommodate
Business-to-Consumer (B2C) transactions, where the exporter sells directly to an overseas customer.
Under this structure, export proceeds are to be repatriated within 120 days from shipment or service
delivery.

However, global e-Commerce has evolved beyond the B2C model. Increasingly, Bangladeshi
producers and digital sellers operate under Business-to-Business-to-Consumer (B2B2C)
arrangements, where goods or services are first sold to an intermediary platform or aggregator
abroad, which then sells to the final customer. In such cases, payment realization may take longer
than under direct sales, as proceeds depend on the completion of the second-leg sale.

Recognizing this business structure and extending the repatriation period from 120 to 180 days
would reflect international norms and operational realities. It would encourage domestic businesses
to collaborate with large global platforms such as Amazon, Etsy, or Alibaba, and allow local
marketplaces to build their own cross-border fulfillment networks. These arrangements have become
central to modern global trade and should be fully acknowledged in Bangladesh’s regulatory
framework.

With this adjustment, Bangladeshi enterprises could participate in complex global value chains,
enhance visibility in international markets, and diversify export products beyond garments and
traditional items. The country’s creative industries, technology startups, and digital service providers
would gain the regulatory flexibility they need to compete internationally.

Together, these changes represent more than administrative updates—they form a strategic
modernization of Bangladesh’s foreign exchange regulatory landscape. The aim is to preserve the
prudential principles of the system while making it more adaptive to the digital age. Global
experience shows that economies embracing regulatory innovation in digital trade witness faster
export diversification, deeper inclusion, and stronger formalization of cross-border payment flows.
Importantly, these updates would not weaken compliance or oversight. On the contrary, they would
strengthen transparency and control by channeling a larger share of e-Commerce payments through
regulated institutions. The involvement of authorized MFSPs, PSPs, and banks ensures that

anti–money laundering and counter–terrorism financing standards remain intact. Digital monitoring
and reporting tools can further help the central bank track these transactions with greater precision
than traditional paper-based systems allow.

The potential economic benefits are wide-ranging. Facilitating cross-border e-Commerce would
generate new export income streams, support the government’s goal of creating a trillion-dollar
digital economy by 2041, and help reduce the current account gap by boosting inflows. For small
entrepreneurs, the reforms would mean direct access to global customers without dependence on
intermediaries. For the financial system, it would mean deeper digital penetration and greater
efficiency. For the broader economy, it would mean an expanded export base and improved
resilience against global shocks.

Bangladesh’s success in mobile finance and digital inclusion provides a strong foundation for this
next step. The country already leads in digital transaction adoption in South Asia. Extending that
success to cross-border trade is both a natural progression and an economic necessity. As
international competition intensifies, the agility of regulatory adaptation will determine how
effectively Bangladesh captures new opportunities.

Ultimately, these refinements are not about deregulation—they are about smart regulation. The goal
is to build a system that supports innovation without compromising integrity. A foreign exchange
regime that can accommodate micro exporters, digital platforms, and new payment technologies is
one that truly reflects the realities of a 21st-century economy.

As Bangladesh stands at the crossroads of industrial transformation and digital globalization,
aligning its regulatory environment with the pace of change is crucial. The time has come to shift
from cautious participation to proactive engagement in the global e-Commerce ecosystem. By
modernizing foreign exchange rules in line with contemporary trade practices, Bangladesh can
empower its entrepreneurs, attract new investments, and ensure that every online transaction
contributes directly to national growth.

The world is moving toward borderless trade powered by digital finance. For Bangladesh, the
opportunity is clear: to transform its vast digital potential into tangible global success. A forward-
looking foreign exchange framework—simplified, inclusive, and adaptive—will be the foundation
upon which that success is built.