Bangladesh Bank Eases Foreign Currency Regulations for Freelancers

Bangladesh Bank has issued a comprehensive suite of new guidelines designed to simplify foreign currency transactions for freelancers and individual service exporters across the country.

The circular, published on Wednesday, 22 July, introduces a range of regulatory relaxations for receiving, retaining, and utilising foreign earnings, aligning financial procedures with the operational realities of the digital economy.

Under the updated framework, freelancers can now receive foreign remittances by presenting electronic proof, including platform activity statements, professional email correspondence, or other digital communication logs. This step significantly reduces reliance on traditional export documentation, providing a streamlined process tailored to modern digital trade practices.

Financial thresholds have also been adjusted to improve transaction efficiency. Inward remittances up to 20,000 US dollars can now be accepted without requiring formal declarations. Additionally, individual transactions carried out via Online Payment Gateway Service Providers (OPGSPs) will be permitted up to a ceiling of 10,000 US dollars, provided the funds are repatriated into the country within the stipulated timeframe.

To broaden financial access, the central bank’s directive authorises the issuance of dual-currency “Freelancer Cards”. The regulation also encourages greater integration of Mobile Financial Service Providers (MFSPs) and Payment Service Providers (PSPs) into the remittance ecosystem, making domestic fund withdrawals more accessible for independent contractors.

Regarding foreign currency retention, information technology sector freelancers are now permitted to hold up to 50 percent of their export earnings in foreign currency within Exporters’ Retention Quota (ERQ) accounts. For non-IT service exporters, the retention limit has been set at 30 percent. These retained funds offer service providers enhanced flexibility when managing international business expenses, subscriptions, or foreign travel.

Industry experts and stakeholders have welcomed the initiative by Bangladesh Bank, noting that reducing administrative burdens will encourage more freelancers to channel their earnings through official banking networks. By integrating independent digital services into formal financial structures, the policy is expected to enhance transparency and boost foreign exchange inflows into the national economy.