BB eases rules for foreign investors

Bangladesh Bank (BB) has relaxed rules to provide support to foreign investors.

As per the new measure, foreign investors who are remitting money from abroad will get the scope to retain forex in their foreign currency accounts at local banks for up to one year after registering their businesses here and import capital and other machinery to establish factories, according to a circular.

"To facilitate transactional needs in foreign exchange, it has been decided that Authorised Dealers (ADs) (banks) may retain foreign currency sent by foreign investors to invest in Bangladesh," said the central bank.

The BB said authorised dealers may henceforth open temporary foreign currency accounts in the names of the proposed companies of foreign investors to park funds remitted from abroad as equity.

"On completion of the registration or commencement of the business, new FC (foreign currency) accounts in the names of the companies may be opened by transferring the fund held in temporary FC accounts," it added.

The BB said funds held in the FC accounts shall be used only for permissible outward payments on account of capital expenditures, including encashment in taka.