Bangladesh Bank Raises Annual Foreign Travel Quota to $18,000

💰 Dhaka, Bangladesh — The Bangladesh Bank (BB) has increased the annual foreign exchange travel entitlement for Bangladeshi nationals to $18,000 from $12,000, aiming to facilitate genuine travel-related foreign exchange requirements.

📋 In a circular issued yesterday, the BB allowed authorised dealers (ADs) — commercial banks permitted to handle foreign exchange transactions — to release foreign exchange of up to $18,000, or the equivalent amount, per calendar year to an adult Bangladeshi national residing in the country for travel abroad.

📊 The decision has been taken with a view to facilitating genuine travel-related foreign exchange requirements of Bangladeshi nationals and considering the evolving needs of international travel, said the central bank. The entitlement for minors below 12 years of age will remain at 50 percent of the amount admissible for adults — i.e., $9,000 per year.

💰 $5,000 Cash Cap Retained

💲 The BB has also retained the existing restriction on the release of foreign exchange in the form of US dollar notes. Cash dollar releases will remain capped at $5,000 per person, within the applicable annual travel entitlement. This means travellers can take up to $5,000 in physical US dollar notes, with the remaining $13,000 available through other instruments such as:

• 💳 International credit cards (Visa, Mastercard, American Express)
• 💳 International debit cards linked to Bangladeshi bank accounts
• 📜 Travellers cheques (where still in use)
• 💳 Prepaid travel cards issued by commercial banks
• 📊 Bank transfers for pre-booked travel services

💬 BB Official: Greater Flexibility for Travellers

💬 The move is expected to provide greater flexibility to Bangladeshi travellers in meeting legitimate expenses related to overseas travel, including tourism, family visits and other permissible purposes, said a senior BB official.

📊 The increase in travel quota comes amid broader trends in Bangladesh’s foreign exchange management:

• 📈 Strengthening reserves: Gross reserves have reached $36 billion as of September 2026
• 💰 Stable taka: Bangladesh Bank has maintained exchange rate stability through managed float
• 👥 Growing middle class: Increasing number of Bangladeshis travelling abroad for tourism, education and medical treatment
• 📊 Remittance inflows: Strong remittance growth ($35.59 billion in FY2025-26) supports foreign exchange availability

🌏 Context: Previous Quota Was $12,000

📊 The previous annual travel quota of $12,000 had been in place for several years. The $6,000 increase to $18,000 represents a 50 percent rise in the annual entitlement — a meaningful adjustment that reflects:

• 💰 Higher global travel costs — hotel, flight and living expenses have risen sharply post-Covid
• 🌏 Bangladesh’s growing integration with the global economy — more business travel, education abroad, medical tourism
• 💲 Currency depreciation reality — $12,000 purchased less in 2026 than when the quota was set
• 🤝 Formalisation push — higher quotas encourage use of banking channels rather than informal hundi

📋 Permissible Travel Purposes

✅ The foreign exchange travel quota can be used for multiple legitimate purposes:

• ✈ Tourism and leisure travel — including package tours and independent travel
• 👪 Family visits — visiting relatives abroad
• 🎓 Education-related travel — for students studying overseas
• 💚 Medical treatment — healthcare visits to hospitals in India, Thailand, Singapore, Malaysia
• 💼 Business travel — attending conferences, meetings, trade fairs
• 🏛 Religious pilgrimage — Hajj, Umrah and other religious travel

💰 Foreign Exchange Documentation

📊 To access the foreign exchange quota, travellers must:

• 📜 Submit valid travel documents — passport with valid visa or visa-on-arrival eligibility
• ✈ Provide flight ticket — confirmed return ticket or one-way ticket for long stays
• 📋 Submit source of funds — tax identification number (TIN) and bank statement
• 💰 Declare purpose of travel — tourism, business, education, medical, etc.

🌏 Strategic Context: Bangladesh Forex Liberalisation

📊 The quota increase signals Bangladesh Bank’s confidence in the country’s foreign exchange position. With reserves at $36 billion and remittance inflows strengthening, the central bank has room to ease foreign exchange controls without risking external stability.

🤝 For Bangladesh’s broader economy, the liberalisation has several implications:

• 💰 Formalisation: Higher quota encourages use of banking channels instead of informal hundi
• 🌏 Tourism boost: Eases outbound travel, supporting the global tourism economy that benefits from Bangladeshi travellers
• 💼 Business facilitation: Easier overseas business travel supports trade and investment
• 🎓 Education support: Helps families fund overseas education expenses through formal channels
• 💚 Medical access: Reduces barriers to seeking specialised medical treatment abroad

⚠ However, the increase also carries some risks that policymakers will monitor:

• 💲 Capital flight — some travellers may misuse the quota to transfer funds abroad
• 💰 Reserve pressure — higher outflows could slow reserve accumulation
• 🌿 Compliance burden — banks need robust systems to verify travel-related transactions

✅ For Bangladeshi travellers and the country’s commercial banks, the quota increase is positive news. The $18,000 annual entitlement provides more headroom for legitimate travel expenses while the $5,000 cash cap maintains prudent controls on physical dollar outflows. As Bangladesh’s integration with the global economy deepens, expect further calibrated liberalisation of foreign exchange regulations in line with the country’s growing external economic footprint.