Money changers allowed to open FX accounts

Bangladesh Bank has allowed licensed money changers to open foreign currency deposit accounts with authorised dealer (AD) banks to ensure safe storage of cash and reduce transportation risks.

The central bank issued a circular on Wednesday (November 4).

The accounts can only be used for depositing, withdrawing and storing foreign currency notes. No interest or loan facilities will be available.

Money changers must have valid cash-in-transit (CIT) insurance when transporting foreign currencies. Secure transportation arrangements must also be ensured for amounts exceeding limits set by AD banks.

The accounts cannot be used for fund transfers, remittances or third-party transactions. Withdrawals cannot exceed the available balance.

The initiative is expected to reduce cash handling risks and improve transparency in foreign currency transactions.

-AJM