Dhaka, Bangladesh (BBN)– Business leaders and bankers have urged the government to take measures immediately to amend the 64-year-old Foreign Exchange Regulations Act (FERA) to facilitate the country’s foreign trade and investment.
They placed the demand at a dialogue on new foreign exchange regulations to facilitate trade and investment.  The International Chamber of Commerce – Bangladesh (ICCB) organized the dialogue at Bangabandhu International Conference Centre in the capital, Dhaka on Saturday with its President Mahbubur Rahman in the chair.
Commerce Minister Muhammad Faruk Khan assured the business community and bankers that he would place the recommendations of the dialogue to the highest authority of the country.
“The act will be amended through consultations with the stakeholders, including the business community, to make it user-friendly,” the commerce minister said while speaking as the chief guest of the dialogue. 
In his address of welcome, ICCB President Mahbubur Rahman said in the present context of free market economy, it is essential to update the FERA in such a way that it becomes more user-friendly. 
The amended act should contribute to the growth of the economy, without compromising the basic interest of the country, he said. 
“Bangladesh has liberalized foreign exchange rules for foreign investment. But, there are various restrictions for the local investors, except banks, having expertise in respective field of operations, to invest in a third country. As a result, we are losing the prospect of earning more foreign exchange,” Mr Rahman noted. 
The revised FERA should allow the local exporters to sell their short-term account receivables to overseas buyers at competitive rates under contract-based export, said Mamun Rashid, Chairman of ICCB Standing Committee on Banking Technique and Practices.  
He presented a keynote paper titled ‘Regeneration of FERA and FX Guideline: The Prime Need of the Hour’ at the dialogue. 
“This is high time we should shift our focus from hoarding foreign currency to facilitating international trade for the sake of the economy,” Mr Mamun said. 
The revised act should reflect the business community’s rational expectations, he said, adding that  India repealed its FERA 1973 with Foreign Exchange Management Act (FEMA) – 2000.
Currently, a nine-member committee is working to prepare the draft of the modified act. It is likely to be submitted to the finance ministry by the end of this month. 
“We’re now preparing the draft with amendments,” a member of the committee confirmed. 
A number of business leaders, along with managing directors, chief executive officers and senior officials of commercial banks, financial institutions and corporate entities, also participated in the program.
 
BBN/SI/AD-06Mar11-7:45 pm (BST)