Bangladesh Bank on Sunday allowed Non-resident Bangladeshis (NRBs) to open bank accounts in all usable foreign currencies.
At the same time, interest rates offered on such foreign currency accounts have been made market-driven, meaning banks can now set rates based on customer-bank relationships.
Bangladesh Bank issued a circular in this regard on Sunday.
Until now, NRBs could only open accounts in four approved foreign currencies: US Dollar, British Pound, Euro, and Japanese Yen.
With the new directive, they can open accounts in any convertible and usable foreign currency permitted under international banking norms鈥攕uch as the Canadian Dollar, Australian Dollar, or Chinese Yuan.
Central bank officials expect the move will increase the inflow of foreign currency into the country, particularly from NRBs.
According to the circular, NRBs can now open both Private Foreign Currency (PFC) accounts and Non-Resident Foreign Currency Deposit (NFCD) accounts in any usable foreign currency.
Previously, these accounts were restricted to the four major currencies.
Additionally, the fixed interest rates on deposits in PFC and NFCD accounts have been withdrawn.
From now on, banks can negotiate and determine interest rates with account holders based on market conditions and client relationships.
This flexibility is expected to help banks attract more foreign currency deposits and offer more competitive services to NRBs, who contribute significantly to the country鈥檚 foreign exchange reserves through remittances, BB officials said.
