Local businesses and service providers catering to foreign tourists have been granted a major regulatory facilitation by Bangladesh Bank. Under a newly issued circular, establishments that accept card payments from foreign visitors are now permitted to retain up to 15 percent of their earned foreign currency in designated foreign currency accounts. This progressive measure is designed to boost the tourism sector, encourage foreign-facing retail and hospitality businesses, and streamline international payment mechanisms within the country.
The scope of this new facility covers a wide array of tourism-related enterprises, including hotels, resorts, upscale restaurants, shopping malls, and retail outlets that regularly engage with international clientele. Previously, all foreign currencies acquired through card transactions by these businesses were subject to immediate encashment into local currency through Authorized Dealer (AD) banks. With the fresh guidelines in place, AD banks are now authorized to allow these businesses to hold 15 percent of their foreign exchange earnings, while the remaining portion will continue to be converted into local currency as per existing norms.
Central bank officials emphasized that the primary objective of this policy is to incentivize merchants who offer goods and services tailored to foreign nationals. Businesses dealing with international tourists often require foreign currency to meet specific operational expenses, procure imported items, or settle international marketing and service fees. By allowing them to retain a portion of their earnings in foreign currency, the central bank has effectively addressed a long-standing liquidity need for these enterprises, enabling them to conduct cross-border transactions much more smoothly.
Financial analysts and tourism sector stakeholders have widely welcomed the initiative, noting that it will foster a more competitive and welcoming environment for international visitors. As digital and card payments become increasingly pervasive, simplifying the backend currency settlement process removes significant friction for businesses. Furthermore, this policy is expected to strengthen formal banking channels, reduce reliance on informal money markets, and inject fresh dynamism into Bangladesh's burgeoning hospitality and tourism economy as it seeks to attract greater foreign investment and global travelers.
