Lesson 36 of 42 · Part N · Level 2 · Explained
Taking foreign exchange, Taka and securities out of Bangladesh
What counts as foreign exchange under the FER Act, how much foreign exchange and Taka a traveller may carry out of Bangladesh, why currency notes cannot go by post or courier, and how holders of foreign securities get permission to send them abroad.
In Lesson 35, Counter-trade: settling imports and exports against each other, Tamim learned how two deals can pay each other through an escrow account, without dollars flying back and forth every week.
This week the dollars are flying, and so is Tamim. He has a business trip abroad to meet suppliers for his trading house in Motijheel. On Sunday he walks up to the export desk with his passport, a travel bag over one shoulder and a long list of questions.
"Eliana," he says, "my cousin says I can carry as much cash as fits in my socks. My uncle says I can carry nothing at all. And I also have some shares in a company abroad that I want to sell while I'm there. Who is right?"
Eliana laughs. "Probably neither of them. Let's keep your socks for your feet." By luck, the bank has a guest that afternoon: Shabnam, a Supreme Court advocate who works on banking and commercial law, including the FER Act. Eliana invites Tamim to sit in.
Shabnam opens the circular to Part N. "Before we talk about how much you can carry," she says, "we must agree on what the law means by foreign exchange. Then the limits make sense."
This lesson opens Part N, on taking money and securities out of Bangladesh.
In plain words
Before any limit makes sense, we need to know what the word foreign exchange covers. The circular points to Section 2 of the FER Act, 1947, which defines it. In everyday talk, foreign exchange means dollars, euros and other foreign money. The legal meaning is wider. It includes these papers:
- cheques
- drafts
- travellers' cheques
- letters of credit
- bills of exchange
- promissory notes
These count as foreign exchange in two cases:
- They are expressed or drawn in foreign currency, for example a cheque written in US dollars; or
- They are in Bangladesh currency but payable in foreign currency, for example a paper written in Taka that will be paid out in dollars.
Note the word "includes". The list shows things that are covered; the circular does not say it is the full list. Shabnam's simple advice: when one of these papers is in foreign currency, or payable in foreign currency, treat it with the same care as foreign currency notes. So a dollar cheque in Tamim's pocket is not "just paper". The rules on taking foreign exchange out of Bangladesh, in N-2, apply to it too.
At the desk
Tamim shows Eliana a USD 2,000 cheque a buyer gave him and asks if it is "only a cheque, not money". Eliana explains that under the definition in Section 2 of the FER Act, 1947, a cheque drawn in foreign currency is foreign exchange. So the rules in N-2 on taking foreign exchange out of Bangladesh cover it as well.
Key words
- FER Act 1947
- Foreign Exchange Regulation Act. The main law behind Bangladesh Bank's foreign exchange rules.
- Promissory note
- A written promise by one person to pay a set sum to another, on demand or on a set date.
- Bill of exchange (draft)
- A written order from the seller telling the buyer or a bank to pay a set sum, at sight or on a set later date.
- Traveller's cheque
- A pre-printed cheque for a fixed amount that a traveller can cash or spend abroad. Under N-1, one in foreign currency counts as foreign exchange.
Read the rule as written (Para N-1)
The term foreign exchange as defined under Section 2 of the FER Act, 1947 includes cheques, drafts, travellers' cheques, letters of credit, bills of exchange and promissory notes expressed or drawn in foreign currency, or in Bangladesh currency but payable in foreign currency.
Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part N, paragraph 1 (page 51). The original circular is the authority.
In plain words
N-2 sets out who may take foreign exchange out of Bangladesh, and how much. It has six parts.
(1) Money issued by an AD. Any person may take out foreign exchange that an AD issued to him and endorsed on his passport. The passport entry is the proof that the money came through a bank.
(2) General permission. Bangladesh Bank has already given permission, so no separate application is needed, in two cases:
- (a) ADs may send out cheques, drafts or bills of exchange they got in their normal course of business and within the terms of their authorisation.
- (b) A foreign national who is resident in Bangladesh but not domiciled here may take or send out drafts or cheques drawn on their foreign currency accounts.
(3) Ship and aircraft safes. Currency brought into Bangladesh in the safes of vessels or aircraft, or taken on board with Bangladesh Bank's permission, may be taken out.
(4) Residents coming home. A person ordinarily resident in Bangladesh may take out up to USD 10,000 (or its equivalent) that he brought in without declaration when he returned from abroad.
(5) Non-residents. A person not ordinarily resident in Bangladesh, including Bangladesh nationals working abroad, may take out any amount up to what he declared to the Customs Authorities on arrival. If he brought foreign exchange in without declaring it, he may take out up to USD 10,000 (or its equivalent) of it when leaving.
(6) No notes or coins by post. Currency notes and coins may not be sent out of Bangladesh by post, courier or any other means.
Think of the arrival declaration as a receipt: for a non-resident, it sets the ceiling on what goes back out. Without it, the ceiling is USD 10,000.
At the desk
Tamim returned last month from a trip with USD 6,000 that he did not declare, and now plans to carry it on his next trip. Eliana explains that under N-2(4), a person ordinarily resident in Bangladesh may take out up to USD 10,000 brought in without declaration on return, so USD 6,000 is within that limit. For his new travel money, he can buy foreign exchange from the AD and have it endorsed on his passport under N-2(1). When he asks whether he could simply courier some dollar notes to his supplier instead, she says no: N-2(6) does not allow currency notes and coins to be sent out by post, courier or any other means.
Key words
- Passport endorsement
- An entry an AD makes on a traveller's passport recording the foreign exchange it issued to him. Under N-2(1), foreign exchange endorsed this way may be taken out of Bangladesh.
- General permission
- Permission that Bangladesh Bank has already given in the rules to everyone in a stated group, so no one in that group needs to apply case by case.
- Customs declaration
- Telling the Customs Authorities, on arrival, how much foreign exchange you are bringing in. Under N-2(5), a non-resident may take out up to the declared amount.
- Courier
- A private company that carries parcels and documents door to door, often faster than the post.
Read the rule as written (Para N-2)
(1) Any person may take out of Bangladesh with him foreign exchange issued to him by an AD and endorsed on his passport.
(2) General permission has been granted:
(a) To the ADs to send out of Bangladesh cheques, drafts or bills of exchange which have been acquired by them in their normal course of business and within the terms of their authorization; and
(b) To a foreign national who is resident in Bangladesh, but is not domiciled in Bangladesh to take or send out of Bangladesh drafts or cheques drawn on their foreign currency accounts.
(3) Currency which has been brought into Bangladesh in the safes of vessels or aircraft or which has been taken on board vessel or aircraft with the permission of the Bangladesh Bank may be taken out of Bangladesh.
(4) Any person ordinarily resident in Bangladesh may take out foreign exchange not exceeding USD 10,000 (Ten thousand) or its equivalent which was brought in without declaration at the time of returning from abroad.
(5) Any person not ordinarily resident in Bangladesh including Bangladesh nationals working abroad may take out of Bangladesh any amount in foreign exchange not exceeding the amount declared by him to the Customs Authorities on arrival in Bangladesh. However, such a person may take out at the time of leaving Bangladesh foreign exchange not exceeding USD 10,000 (Ten thousand) or its equivalent brought in without declaration to the Customs Authorities on his arrival in Bangladesh.
(6) It is not permissible to send currency notes and coins out of Bangladesh by post/courier or any other means.
Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part N, paragraph 2 (page 51). The original circular is the authority.
In plain words
N-3 is about our own money: Bangladeshi legal tender notes and coins, that is, Taka.
- Any person may take Taka out of Bangladesh. This covers residents and visitors alike.
- The limit is Taka 10,000 in value.
- The limit applies at any one time, so it is counted each time a person leaves.
Why carry Taka at all? Think of Tamim landing back at the airport late at night. A few thousand Taka in his wallet pays for the taxi home without hunting for a money changer. But Taka is not for spending abroad in large amounts, and the cap keeps it small.
The circular gives only the amount and the words "at any one time". It doesn't say anything about how many trips a person may make, so we shouldn't invent a yearly cap. And remember N-2(6): whatever the limit for carrying, currency notes and coins may not be sent out by post or courier.
At the desk
Before his flight, Tamim counts Taka 14,000 in his wallet and asks Eliana whether that is fine. She explains that under N-3, any person may take out Bangladeshi notes and coins up to Taka 10,000 in value at any one time. He leaves Taka 4,000 with his wife for the market, keeps Taka 10,000 for his taxi home, and everyone is happy.
Key words
- Legal tender
- Money that the law says must be accepted as payment in a country. In Bangladesh, Taka notes and coins.
- At any one time
- Counted on each single occasion, here each time a person leaves Bangladesh.
Read the rule as written (Para N-3)
Any person may take out of Bangladesh, Bangladeshi legal tender notes and coins not exceeding Taka 10,000 (Ten thousand) only in value at any one time.
Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part N, paragraph 3 (page 51). The original circular is the authority.
In plain words
Now Tamim's shares. A share or bond is a security: a paper (or record) showing you own an investment.
The basic rule. Under Section 13(l)(a) of the FER Act, 1947 (as printed in the circular), no person may take or send any security to a place outside Bangladesh except with Bangladesh Bank's permission.
Who applies, and how. Residents of Bangladesh who hold foreign securities and want to send them to a bank, broker or agent abroad for sale, transfer and similar purposes should:
- Apply to Bangladesh Bank through an AD;
- Ask for the necessary export permit.
The condition. Permission for transfer of foreign securities will be granted if the AD gives an undertaking that either:
- the securities will be received back in Bangladesh within a specified period; or
- if they are sold, the foreign currency proceeds will be remitted to Bangladesh.
Shabnam puts it like lending your car to a cousin: you can let it go, but someone responsible must promise it comes back, or that the money for it does. Here the AD makes that promise to Bangladesh Bank, so the AD will want to be sure the customer will keep it. The circular doesn't say how long the "specified period" is.
At the desk
Tamim holds shares in a company abroad and wants to send them to a broker there for sale during his trip. Eliana explains that he cannot simply carry them out; he must apply to Bangladesh Bank through the AD for an export permit. Permission will be granted if the AD gives an undertaking that, once the shares are sold, the foreign currency proceeds will be remitted to Bangladesh. So she asks Tamim to confirm in writing that the sale money will come back through the bank before the AD signs anything.
Key words
- Security
- An investment paper or record, such as a share or a bond, that shows ownership of an investment or a right to be paid.
- Foreign securities
- Securities issued abroad, such as shares or bonds of a foreign company.
- Export permit
- Bangladesh Bank's permission, applied for through an AD, to take or send securities out of Bangladesh.
- Undertaking
- A formal promise. Under N-4, the AD's promise that the securities will come back within a specified period, or that sale proceeds will be remitted to Bangladesh.
Read the rule as written (Para N-4)
Under Section 13(l)(a) of the FER Act, 1947 it is not permissible for any person to take or send out any security to any place outside Bangladesh except with permission of the Bangladesh Bank. Residents in Bangladesh who are holders of foreign securities and who wish to send these securities to bank, brokers or agents abroad for purposes of sale, transfer etc., should apply to Bangladesh Bank through an AD for the necessary export permit. Permission for transfer of foreign securities will be granted provided the AD gives an undertaking that the securities will be received back in Bangladesh within a specified period or in the case of sale, the foreign currency proceeds will be remitted to Bangladesh.
Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part N, paragraph 4 (page 51). The original circular is the authority.
Putting it together
So far: under the FER Act, foreign exchange includes cheques, drafts, travellers' cheques, LCs, bills of exchange and promissory notes in foreign currency, or in Taka but payable in foreign currency. A traveller may take out foreign exchange issued and endorsed on his passport by an AD; undeclared amounts are capped at USD 10,000 for residents returning and for non-residents leaving, while non-residents may also take out what they declared on arrival. Currency notes and coins may not go by post or courier, Taka is capped at Taka 10,000 at any one time, and securities need Bangladesh Bank's permission, with an AD's undertaking that they or their sale proceeds come back.
Next: Lesson 37, Exporting gold and silver jewellery.