BB relaxes foreign exchange rules

The Bangladesh Bank (BB) has decided to allow authorised dealer banks to remit admissible payment abroad on behalf of concerned companies up to one percent of annual sales as declared in the previous year's income tax return of the companies or one lac US dollar, whichever is higher. 

The central bank issued a circular today in this regard.

In November of last year, Bangladesh Bank widened the scope of remittance facilities within the limit of one percent of annual sales without confining to training and consultancy fee. 

The circular also allowed other current account payments like audit fee, certification fee, commissioning fee, testing fee, valuation fee, etc. 

The facilities were made applicable to industrial enterprises operating in domestic processing areas of economic zones selling goods in Taka. But it restricted remittances for which permission is required from competent authorities like Bangladesh Investment Development Authority (BIDA) for payment of royalty, technical knowledge/technical assistance and franchise fee.

The current circular further extended the facilities by linking absolute figure of one lac US dollar with one percent of previous year's sales, whichever is higher.

Md. Shahidul Islam, general manager of foreign exchange policy department, said, "It would help small value companies requiring bonafide payments beyond the limit of one percent of previous year's sales without central bank's approval.
 
An official of central bank said that Bangladesh Bank has continuously been updating regulations to facilitate business. The new rules will empower authorised dealer banks to make outward remittances on behalf of their customers for meeting current legitimate expenses within the set threshold.