Bangladesh Bank issues new foreign exchange guidelines for freelancers

The Bangladesh Bank has introduced new guidelines aimed at simplifying foreign currency transactions for freelancers and individual service exporters, as part of efforts to modernise the country's foreign exchange framework in line with the growing digital economy.

In a circular issued on Wednesday (22 July), the central bank said freelancers will now be allowed to use platform statements, emails, invoices and other forms of digital communication as proof of foreign income. The move is expected to reduce reliance on conventional export documentation and make it easier to repatriate earnings.

Under the new rules, freelancers may receive inward remittances of up to US$20,000 without submitting a formal declaration. In addition, payments of up to US$10,000 per transaction may be received through Online Payment Gateway Service Providers (OPGSPs), provided the funds are repatriated to Bangladesh within the prescribed timeframe.

To further expand digital payment options, the central bank has also allowed the introduction of dual-currency "Freelancer Cards". The guidelines also broaden the scope for using Mobile Financial Service Providers (MFSPs) and Payment Service Providers (PSPs), making international transactions more convenient and efficient.

According to the circular, freelancers in the information technology sector will be permitted to retain up to 50% of their export earnings in foreign currency under the Exporters' Retention Quota (ERQ). For other service exporters, the retention limit has been set at 30%. The measure is intended to improve their ability to meet international payment obligations and cover overseas business expenses.

Industry stakeholders say the revised framework better aligns Bangladesh's foreign exchange regulations with the realities of digital trade and freelancing. They believe it will encourage more freelancers to remit their earnings through formal banking channels, improve transparency and strengthen the country's foreign currency inflows.

Business leaders also say the initiative will not only make foreign exchange transactions easier for freelancers but also help integrate Bangladesh's service export sector more effectively into the global digital economy.