The New Nation - Internet Edition

BUSINESS REPORT

Bangladesh Bank has relaxed the foreign exchange guidelines for providing more facilities to the exporters, travelers and foreign investors.

Following the relaxation in foreign exchange transaction guidelines, the exporters, travelers, resident foreign currency depositors and people intending to perform hajj, from now, will be able to make their payments through international credit and debit cards.

The central bank issued a circular on Tuesday bringing relaxation in the

Guidelines for Foreign Exchange Transactions-1996.

From now, the Bangladesh Bank approval is no more required for the intending foreign investors to make investment and Bangladeshi travelers to go abroad, said a high official of the central bank.

He said the foreign airlines, shipping lines and courier services have to inform Bangladesh Bank within 15 days of sending remittance through their authorised dealers and submit a set of all relevant papers to the central bank.

According to the circular, the authorised dealers may open a Non-resident Taka Account in the name of the proposed company or enterprise of foreign investors contemplating to invest in Bangladesh without prior approval of Bangladesh Bank.

Upon registration and commencement of the business, a new account in the name of the company may be opened following usual procedure. However, the account opened previously should be closed immediately and balances lying therein shall be transferred to the new account.

The authorised dealers may release registration or participation fee of the government officials, employees of banks and financial institutions operating in Bangladesh, and faculties of nationally recognised banking training institutions for attending training or seminar or workshop abroad.

The dealers may allow remittance of subscription fee for academic or research journals to be procured from abroad by public universities and medical colleges, recognised national research or training institutes, university grants commission approved private universities and government approved private medical colleges, up to $3000 or equivalent for an institution per calendar year against production of invoice supporting documents subject to establishment of bonafides. Such remittances are to be reported to Bangladesh Bank.

They must see, before opening an LC, documentary evidence that a firm order for the goods to be imported has been placed and accepted. They should also obtain confidential report on the exporter from their branches in their discretion, satisfy themselves as to the standing of the exporter by consulting standard book of reference issued by international credit rating agencies such as Seyds, Dunn and Bradstreet in all cases where the amount of the LC exceeds Tk 5 lakh against perform invoices issued direct by foreign suppliers and Tk 10 lakh against indents issued by local agents of the suppliers.

According to the changed guidelines, an incoming person may retain foreign exchange up to $5000 or equivalent brought in by him without endorsement in passport and in air ticket.

The dealers will comply all instructions issued so far relating to issuance of international cards and those relating to new issuance.

International credit or debit cards may be issued against the balances held in the exporter's retention quota foreign currency account as per entitlement mentioned in the Guidelines for foreign exchange Transactions.

International credit and debit cards may be issued in favour of up to three top level executives of an exporting firm holding retention quota. International credit card may be issued against the balance held in resident foreign currency deposit account by authorities' dealers in Bangladesh.

The authorised dealer may issue international credit card against the annual personal travel quota entitlement of the prospective cardholder as per the guidelines.

Each year, government dealer's general permission for releasing foreign exchange favouring private sector hajj agencies to meet food and lodging expenses of the pilgrims in Saudi Arabia against foreign exchange entitlement fixed for each individual.

International cardholder may pay their mobile phone roaming service utilisation bill to mobile phone operators in Bangladesh through international card. For realisation of roaming bills, the mobiles phone operator will specify the bill under the category SAARC and non-SAARC member countries, including the amount of security deposit, of the customer.