Bangladesh Bank is going to ease the foreign exchange regulation in a bid to attract foreign investment more to the country, said central bank officials.
A BB official told New Age on Thursday that the article of 18 (A) and (B) under the Foreign Exchange Regulation Act-1974 would be relaxed so that the foreign companies or their local agents could operate business in the country without difficulty.
According to the article of 18 (A), without prior permission from the BB, a Bangladeshi citizen or a local company will not be able to accept an appointment to act as an agent in trading or commercial transaction on behalf of a foreign company.
Bedsides, a Bangladeshi citizen or a foreigner has to take permission from the central bank if he or she wants to join with any foreign company as a technical or a management adviser or any post.
With the easing of the foreign exchange regulation, the local companies or persons will not have to take permission from the central bank in the coming days if they want to act as agents or employees with the foreign companies, said the BB official.
According to the article of 18 (B), any foreign company or a person will not be able to set up any branch or any other place of business for carrying or any activity of a trading in the country without prior permission from the central bank.
When the regulation will be relaxed, the official said, the foreign companies will easily be able to establish their branch office.
He, however, said that the foreign companies will have to take permission from the board of investment to set up their branch.
He said the board of directors of the BB had recently made a decision in its meeting in this regard for attracting the foreign investment and improving the local business environment.
He said the BB would not require taking permission from the government to revise the articles as the Foreign Exchange Regulation Act gave the power to the central bank to change the rules if required.
The BB will issue a circular to all banks in this regard in just one or two days, the official said.
Another BB official said a number of reputed foreign companies had recently expressed their interest to set up branches in Bangladesh but many of them were reluctant due to strict regulations.
The central bank will also relax the rules of money transaction of the foreign companies so that they can send profit to their home countries easily, he said.
After issuance of the new circular, the foreign investment in the country may increase significantly, the official said adding that the local business environment would also improve.
-With New Age input
