Dhaka, Bangladesh (BBN)– The central bank of Bangladesh has asked commercial banks to report on foreign currency account transactions of resident corporate entities and individuals to know the actual transactions of foreign exchange in the country.
Under the new regulations, the inflow of foreign direct investment (FDI) will increase that would also help improve the country’s overall balance of payments (BoP) situation, officials said.
“We’ve asked the banks to submit such report to the concerned departments of the central bank from the month of November this year for transactions in October,” a senior official of the Bangladesh Bank (BB) told BBN in Dhaka on Wednesday.
He also said the central bank has taken such measures aiming to prepare the country’s BoP accounts in line with international standards.
The BB has already issued a circular in this connection and asked the commercial banks to submit the report properly.
“To be included in the ‘Balance of Payment Accounts’ are the foreign exchange transactions of resident entities undertaken through their foreign currency accounts maintained with authorised dealer banks, officially known as ADs,” the BB said in its circular.
The statements are to be submitted to the central bank by the ADs with their monthly returns, the circular added.
Foreign currency accounts transactions of resident corporate entities which include industrial concerns, gas, oil and other minerals exploration companies, power generation companies, mobile phone operators, non-banking financial institutions, non-government organizations (NGOs), micro-finance institutions and other organizations are to be reported in line with the new regulations.
On the other hand, foreign nationals residing in Bangladesh, foreign firms registered abroad and operating in Bangladesh, Bangladesh nationals working with the foreign organizations operating in Bangladesh who get their salaries and allowances in foreign currency, local and joint venture contracting firms employed to execute projects by foreign donor agencies, diplomatic bonded warehouses operating in Bangladesh having limited money changing license and resident foreign currency deposit accounts of Bangladesh nationals will also come under such reporting system.
However, transactions in non-resident foreign currency deposit (NFCD) accounts and other four categories of foreign currency accounts will be excluded from reporting under the new regulations.
The four categories of accounts are of foreign nationals residing abroad, foreign firms registered abroad and operating abroad, foreign missions and their expatriate employees and international bodies as stated in the code lists for reporting of external sector transactions by the authorized dealers, published by the central bank.
BBN/SS/SI/AD-08)ctober09-2:28 am (BST)
