Bangladesh Bank (BB) has doubled the Exporters' Retention Quota (ERQ) for merchandise exporters of goods with high import content, raising the permissible retention limit from 7.5 percent to 15 percent of the repatriated Free on Board (FOB) value. The decision was announced through FEPD-1 Circular No. 23 issued by the Foreign Exchange Policy Department (FEPD)-1 of the central bank. Eligible merchandise exporters will now be allowed to retain up to 15 percent of their repatriated FOB export proceeds in ERQ accounts, compared to the previous limit of 7.5 percent.
The new directive has come into immediate effect, instructing all Authorised Dealers (ADs) in foreign exchange across the country to implement the revised quota and inform their concerned clients accordingly. The circular amends the provision contained in paragraph 76(1) of FE Circular No. 31, dated July 31, 2025, while all other instructions and conditions stipulated under paragraph 76 of the earlier circular will remain unchanged.
The revised retention limit is expected to provide exporters with greater flexibility in managing their foreign currency requirements, particularly those engaged in export-oriented industries with high import content. This move is anticipated to support export activities and enhance the competitiveness of Bangladeshi exporters in the global market.
Exporters in Bangladesh, especially those with high import content in their goods, will benefit from this increased flexibility. The central bank's decision aims to support the export sector by allowing exporters to retain a larger portion of their foreign earnings, thereby improving their cash flow and operational capabilities.
