The five allowed channels, the ERQ account, and the rules for advance payments.
Money for exports can't arrive any old way, just as a cheque can't be paid into a sweet shop. It must come through a bank (an AD) and through an approved channel.
In this lesson: the five doors through which export money may enter, the dollars an exporter is allowed to keep, and what happens when the buyer pays before shipment.
Payment for exported goods and services may come through an AD:
A Dhaka software freelancer is paid through an international payment gateway; a jute mill is paid in CNY by a Chinese buyer; a garment exporter is paid in US dollars under an LC. All three are allowed doors, as long as the money lands through an AD.
Payment for goods and services exported from Bangladesh may be received through an AD:
(a) In freely convertible foreign currency, including Chinese Yuan (CNY);
(b) In Taka from a non-resident Taka Account;
(c) From Escrow accounts under counter-trade arrangements as detailed in Part-M;
(d) Under 'Acquiring Service' in the realization of proceeds against export through the internet; and
(e) From Online Payment Gateway Service Providers (OPGSPs) and other legitimate operators as detailed in Part-I.
Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part A, paragraph 9 (page 9). The original circular is the authority.
When export money arrives, the exporter may keep a part of it in foreign currency, in an Exporters' Retention Quota (ERQ) account, up to the limit in Part O. The rest is converted to Taka.
Export proceeds may also be kept in a single pool to pay for the exporter's own import bills (for example, raw materials), under the related instructions.
Think of ERQ as a "dollar pocket". A leather exporter keeps a share of each receipt in ERQ to pay for a foreign trade fair next month, without buying dollars back at the market rate.
Exporters are allowed to retain foreign exchange in foreign currency accounts known as Exporters' Retention Quota (ERQ) account at the prescribed limit out of the repatriated export proceeds as detailed in Part-O of this circular. In addition, export proceeds may also be retained in single pool for settlement of import liabilities as outlined in relevant instructions.
Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part A, paragraph 10 (page 9). The original circular is the authority.
Sometimes the buyer pays before the goods are shipped. Before paying that money to the exporter, the bank takes a declaration on the Advance Receipt Voucher (ARV) and reports it in the Online ARV Reporting Module. Then it checks:
A buyer in Japan sends USD 20,000 in advance for handicrafts. Shirin takes the ARV, reports it online, and notes the deadline. If the goods don't ship within a year, the refund comes from ERQ first.
Before paying out money against remittances received from abroad, where purpose of the remittance is stated as advance receipt for goods to be exported from Bangladesh, ADs should obtain a declaration from the beneficiary on the 'Advance Receipt Voucher (ARV)', (as per Appendix-6) certifying the purpose of the remittance with report to the 'Online ARV Reporting Module'. ADs shall also comply with following instructions before accommodating the transaction:
(a) The exporter has received irrevocable LC/contract to execute export against advance payment;
(b) The previous export performance of the exporter is satisfactory and the exporter shall have adequate capability to execute the export order;
(c) The payment in advance shall not bear any interest;
(d) Export needs to be executed within a period not exceeding one year from the date of receipt of advance payment. However, this instruction will not be applicable for advance payment received against performance bonds or bank guarantees/standby LCs; and
(e) In case of non-execution of export including issuance of EXP Form against advance payment, ADs may allow refund of advance payment. In this case, ADs shall utilize funds from Exporters' Retention Quota (ERQ) account first and remainder from Taka accounts.
Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part A, paragraph 22 (page 15). The original circular is the authority.
The money can come through five doors, the exporter may keep a "dollar pocket" (ERQ), and advance money comes with its own rules. Next we follow the paperwork that tracks every shipment: the EXP form.
Four quick questions. Nobody sees your answers but you.
A-9(a) names Chinese Yuan (CNY) explicitly.
A-10: exporters may retain a share of repatriated proceeds in ERQ accounts, as set out in Part O.
A-22(c): the advance payment shall not bear any interest.
A-22(e): use the ERQ account first and the remainder from Taka accounts.
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