Bangladesh launches 'convertible taka account' service for expatriates

The central bank hopes the measure will help increase the supply of foreign currency

Bangladesh Bank has launched a new banking feature called the “convertible taka account” for expatriates, making it the first of its kind in the country.

Through this, expatriates will be able to open a bank account operated in foreign currency in an offshore banking unit operated by a Bangladeshi commercial bank.

The money in that bank account can be converted into Bangladeshi currency.

Issuing the “Non-Resident Convertible Taka Account” policy on Tuesday, Bangladesh Bank said expatriates will also be able to take loans within the country against the account, hoping the measure will help increase the supply of foreign currency.

The interest or profit earned in this account can be withdrawn in foreign currency.

Expatriates will be able to operate all types of bank accounts in foreign currency in an offshore banking unit at the prevailing interest rate.

The policy allows overseas Bangladeshi residents to invest in the country's capital market and abroad through this account.

Similarly, they can withdraw money from this account to pay any liabilities or service fees within the country.

Several countries, including India and Pakistan, have benefited from such initiatives, which also impacted the countries' reserves.