The Bangladesh Bank has permitted exporters to access Taka liquidity by swapping their foreign currency holdings with commercial banks, aiming to ease short-term financing pressures in the export sector.

In a circular issued on Monday, the central bank authorised dealer (AD) banks to engage in Taka–foreign currency swap arrangements against exporters’ balances held in their 30-day pools and Exporters’ Retention Quota (ERQ) accounts.

The swaps will involve a spot purchase of foreign currency against Taka, accompanied by a forward reversal at an agreed rate and maturity.

The tenor of the swap cannot exceed 30 days for 30-day pool funds or the expected utilisation date of ERQ balances.

Settlements must occur at maturity, and swap points may reflect market-based or cost-based interest differentials between the two currencies, the central bank said.

It also clarified that such transactions would not be treated as loans or financing facilities extended by the banks.

Funds obtained through these swaps must be used solely for genuine working capital requirements linked to export operations and not for speculative activities.

Industry observers said the move would help exporters manage short-term liquidity without depending on conventional Taka-denominated export finance, while fostering a more market-driven approach to liquidity management through the use of foreign exchange derivatives.