BB relaxes forex rules for freelancers
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Bangladesh Bank (BB) significantly relaxed foreign exchange transaction regulations for freelancers and individual service exporters to bolster the nation’s expanding digital services industry.
BB issued a circular on 22 July introducing guidelines that permit freelancers to receive payments based on digital records, such as platform statements and emails, rather than relying on traditional export documentation.
This transition to electronic evidence makes the remittance process more compatible with the modern demands of digital trade. BB has authorized the crediting of inward remittances up to $20,000 without requiring any formal declaration, specifically to simplify small-value transactions.
The new rules also allow for transactions through third-party online payment gateway service providers (OPGSPs) up to a limit of $10,000 per transaction, provided that the funds are repatriated to Bangladesh in a timely manner.
To enhance financial accessibility, the circular enables the issuance of dual-currency freelancer cards and widens the scope for mobile financial service (MFS) and payment service providers (PSPs) to handle these digital payment channels.
Freelancers operating within the ICT sector now have the flexibility to retain up to 50 percent of their export earnings in foreign currency accounts, known as the exporters’ retention quota (ERQ), while exporters in other service sectors may retain up to 30 percent of their earnings to manage international business costs.
Industry observers and market participants have welcomed the move as a timely adjustment that aligns the regulatory framework with the current landscape of freelance work. Business insiders believe this initiative will improve the ease of doing business, enhance transparency, and encourage the use of formal remittance channels instead of informal ones.
By integrating local service exporters more deeply into the global digital economy, BB aims to support the country’s broader goal of establishing a knowledge-based, digitally driven export ecosystem.
