Interest rates on foreign currency accounts for NRBs to be based on bank-customer relationship: BB
Banks will also be able to open accounts in any available foreign currency NRB's hold
From now on, interest rates on foreign currency accounts held by Non-Resident Bangladeshis (NRBs) will be determined based on the bank-customer relationship, according to a new circular issued by Bangladesh Bank today (13 April).
Previously, interest rates on such accounts were capped at the Secured Overnight Financing Rate (SOFR), plus a maximum of 3.5%.
The circular states that all Authorised Dealer (AD) banks can open Private Foreign Currency (PFC) accounts and Non-resident Foreign Currency Deposit (NFCD) accounts for the NRBs.
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Banks will now be able to open accounts in any available foreign currency NRB's hold, expanding beyond the previously limited number of currencies.
A senior official from the Bangladesh Bank said under the new policy, banks have been given the freedom to set interest rates independently, based on their business relationship with each customer.
"This change allows banks to get more foreign currency deposits at higher rates," the official added.
