Bangladesh Bank permits cross-border trade settlement in Taka via Vostro accounts

The Bangladesh Bank has officially allowed the settlement of cross-border trade transactions using Taka through Vostro accounts. Under this new provision, surplus balances held in these accounts can be utilized for various permitted investment avenues within Bangladesh. These include foreign direct investment, foreign portfolio investment, alternative investment funds, and open-end mutual funds, provided that all transactions comply with existing regulatory frameworks.