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Previously, the central bank allowed opening foreign currency accounts in the names of local and joint venture contracting firms employed
The Bangladesh Bank (BB) has allowed authorized dealers to open foreign currency accounts in the names of branch offices or liaison offices of foreign companies, operating under approval from the Bangladesh Investment Development Authority (BIDA), or other relevant bodies.
Foreign investors are required to open temporary bank accounts to bring money invested in Bangladesh, as per terms of the approved contract with the government authority under the Guidelines for Foreign Exchange Transactions 2018 (GFET).
Previously, the central bank allowed opening foreign currency accounts in the names of local and joint venture contracting firms employed to execute projects by foreign donors or international donor agencies only.
Authorized dealers can now open foreign currency accounts under their locally operated branches.
The Foreign Exchange Policy Department (FEPD) of the central bank issued a circular in this regard on Thursday.
Speaking to the Dhaka Tribune, Rizwan Rahman, president of Dhaka Chamber of Commerce and Industries (DCCI), said the move by BB is imperative for foreign direct investment (FDI), as well as a business-friendly one.
This will enable to Bangladesh attract FDIs as the move by BB would enable a more business-friendly environment. It is definitely commendable, Rizwan also said.
(DT)
