Bangladesh Bank permits money changers to hold foreign currency accounts

The Bangladesh Bank has issued fresh guidelines allowing authorized money changers to open and operate foreign currency accounts, marking a significant regulatory shift in the nation's foreign exchange management framework.

The central bank's decision comes as part of efforts to enhance operational efficiency within the money changing industry and bring greater transparency to foreign currency transactions. Money changers, who serve as key intermediaries in the foreign exchange market, will now be able to hold accounts denominated in major foreign currencies.

This regulatory change is expected to reduce transaction costs and settlement times for money changers while enabling them to better manage their foreign exchange positions. The move aligns with broader efforts by the Bangladesh Bank to modernize the country's financial infrastructure and improve the accessibility of foreign exchange services.

Money changers play an important role in Bangladesh's financial ecosystem, facilitating currency conversions for businesses, travelers, and individuals. The new framework is intended to strengthen their operational capacity while maintaining compliance with Bangladesh Bank's existing oversight and regulatory requirements.