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Bangladesh Bank has introduced a mechanism allowing businesses to settle bilateral import and export payments directly in Bangladeshi Taka (BDT) via non-resident Taka accounts, commonly referred to as vostro accounts, in an effort to alleviate systemic dependency on the US dollar.
Under a regulatory directive issued by the central bank on Wednesday (September 23), foreign banking partners can clear two-way commercial dues through their designated vostro accounts held with authorized dealer banks in Bangladesh.
Under the new operational framework, import payments collected in Taka will be credited directly to the respective vostro accounts, which can then be utilized to disburse payments to local exporters. While letters of credit (LCs), commercial contracts, and shipping invoices will continue to be denominated in authorized foreign currencies, final transaction settlements will be converted into Taka based on prevailing market exchange rates. Exporters receiving their proceeds in Taka will retain the entitlement to hold equivalent foreign currency quotas to settle raw material import obligations and repay Export Development Fund (EDF) liabilities.
Additionally, non-resident banks will be permitted to park surplus Taka balances in productive domestic investment channels, including Foreign Direct Investment (FDI), foreign portfolio investments, alternative investment funds, and open-end mutual funds, or extend commercial lending to Bangladeshi enterprises subject to regulatory approval. In a separate circular on the same day, the central bank allowed foreign currency inward remittances channeled via exchange houses and International Money Transfer Operators (IMTOs) to be credited to Private Foreign Currency (PFC) and Non-Resident Foreign Currency Deposit (NFCD) accounts, subject to strict compliance with Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Know Your Customer (KYC) guidelines.
https://thedailyexpress.news/news/business/1f1b755f-e7ac-6d40-ad79-4f81ebf508cf