Bangladesh Bank has widened the use of foreign currency deposits as collateral for Taka loans, allowing eligible resident individuals and non-resident Bangladeshis (NRBs) to use such balances to secure short-term and consumer financing.
Previously, balances held in private foreign currency accounts and non-resident foreign currency deposit accounts could be used as collateral mainly for short-term working capital financing in local currency. The central bank on Thursday expanded the facility to cover short-term and consumer finance.
The move will allow eligible depositors to meet their financing needs in Taka without having to convert their foreign currency holdings into local currency.
Bangladesh Bank issued a circular on Thursday, amending its 3 July 2025 dated instructions on access to finance against foreign currency funds held in Offshore Banking Units (OBUs).
Under the revised rules, balances in private foreign currency accounts and non-resident foreign currency deposit accounts may be used as collateral against short-term working capital financing in Taka for resident companies, firms and individuals.
The same deposits can now also secure short-term finance or consumer finance in local currency for resident individuals and NRBs, as applicable.
The 2025 framework had already allowed foreign currency deposits of non-resident account holders maintained with OBUs to be used by their respective Domestic Banking Units (DBUs) as collateral against financing to resident companies, firms and individuals.
It also provided general permission for DBUs to extend Taka loans to their NRB customers under the Foreign Exchange Regulation Act.
