Authorised dealers can remit foreign currency for leased ship payments: BB

The Bangladesh Bank has allowed authorised dealer (AD) banks to remit foreign currency for payments of ships leased by locally registered shipping companies, in a move aimed at strengthening the country’s maritime sector and expanding Bangladesh-owned shipping capacity.

In a circular issued on Thursday, the central bank said that the existing arrangements applicable to aircraft lease payments will also be applicable for payments related to ship leases. The move is expected to encourage local companies to acquire and operate more ocean-going vessels under lease arrangements.

Previously, such foreign currency payment facilities were limited only to aircraft leases by locally registered companies. Under the new directive, AD banks will now be able to facilitate lease payments for ships subject to compliance with certain conditions.

According to the circular, the leased vessels must have necessary approval from the relevant authorities for operation. Shipping companies will also be required to submit regular reports to Bangladesh Bank and ensure that foreign exchange earnings generated from operations are brought back to the country in accordance with existing regulations.

The central bank said the measure is part of its broader efforts to make foreign exchange management more effective while supporting the development of key economic sectors.

Industry stakeholders believe the decision will help Bangladeshi shipping companies increase their presence in international maritime operations. The expansion of locally owned ocean-going vessels could boost foreign currency earnings, reduce dependence on foreign shipping operators and help save foreign exchange.

Experts said the initiative may create new opportunities for the domestic shipping sector by making vessel leasing more accessible and encouraging investment in maritime infrastructure.

The move comes as part of Bangladesh Bank’s ongoing efforts to modernise foreign exchange regulations and provide greater flexibility to businesses engaged in international trade and services.