BB allows banks to open foreign currency accounts for local shippers, airlines
The Bangladesh Bank has permitted banks to open foreign currency accounts under the names of shipping companies and airlines to support their global operations.
From now on, these institutions will be able to deposit 75% of the inward remittances in their accounts. The remaining 25% has to be encashed in local currency, said the Bangladesh Bank in a notice Tuesday (11 April).
Expenditure on the operation of ships or aircraft can be made from the foreign currency account, the notice added.
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The central bank also allowed banks to open foreign currency accounts in the names of Bangladeshi shipping companies and airlines renting ships, containers or aircraft to operators abroad.
These accounts can be used to credit 50% of the inward remittances and the balance can be used to meet expenditures of ships, containers and aircraft. The rest has to be encashed, reads the BB notice.
Experts said local shipping business will expand as a result of the new guidelines of the Bangladesh Bank.
They said domestic shipping companies and airlines will be able to reduce their dependence on foreign agents in global operations and increase their capacity.
