Bangladesh Bank has clarified that authorised dealer (AD) banks must issue payment commitments in taka in favour of the local operations of foreign airlines and shipping companies that have business operations in Bangladesh.
In a circular letter issued on Wednesday, the central bank said AD banks could issue payment commitments in the form of bank guarantees, standby letters of credit or other instruments on behalf of their agent-customers against surplus earnings payable to foreign airlines and shipping companies abroad.
However, the facility will apply to agents of foreign airlines and shipping companies that do not have business operations in Bangladesh, in accordance with Section 18-B of the Foreign Exchange Regulation Act, 1947.
Where foreign airlines or shipping companies maintain business operations in Bangladesh, payment commitments must be issued in taka in favour of their local operations.
The clarification was issued through FEPD-1 Circular Letter No 21, dated 11 November 2026, by the Foreign Exchange Policy Department of Bangladesh Bank.
The central bank referred to paragraph 8(5) of Part-A of FEPD-1 Circular No 32, issued on 2 September 2026, which had permitted AD banks to issue such payment commitments on behalf of agent-customers against surplus earnings payable to foreign airlines and shipping companies.
Under the latest clarification, agents of foreign airlines and shipping companies without business operations in Bangladesh will remain eligible for payment commitments under the existing authorisation, while those representing companies with local operations must receive commitments in taka in favour of those operations.
Bangladesh Bank has instructed all AD banks to bring the clarification to the attention of their concerned clients.
The circular was signed by Nasima Sultana, director of the Foreign Exchange Policy Department-1.
