Voice of International Business

  The Central Bank of Bangladesh has made further simplification of the process of Foreign Investment in the country. They have clarified the simplification by their latest publication, FE Circular Letter No. 11, date: 17.05.2021, from Foreign Exchange Policy Department, Bangladesh Bank, Head Office.   With this publication, both bankers and foreign investors will be pleased to know that now they do not have any further barriers to open a temporary FDI account through an online application. This policy change will surely ease both the Authorized Dealer (AD) banks in Bangladesh and the potential foreign investors.   Simplification of Account Opening Procedures:   The Central Bank of Bangladesh has recently allowed banks in Bangladesh to open accounts through online applications. They published a circular letter from their Banking Regulation and Policy Department (BRPD), Head Office on 11.03.2021 (Circular letter no. 16) in this regard.   Previou...

The government of Bangladesh provides various facilities to exporters to promote export-oriented industries of the country. As part of the Export facilitation, it extends the cheapest export loan facility to the manufacturer exporters through the Central Bank of Bangladesh. Officially this loan is called EDF Loans.   History of Export Development Fund (EDF) and Its Objective: The Government of Bangladesh Established the Export Development Fund (in short EDF) in 1989 with the support of the International Development Association (IDA). The primary size of this fund was USD31.2 million. The good news is, Bangladesh Government is increasing Export Development Fund to USD5.50 billion, The Daily Star, 28.03. 2021. Though the government established EDF to promote non-traditional manufactured items export business of Bangladesh, it is now not limited to that concept. This EDF loan intends to ensure access to finance in Foreign Currencies/ Foreign Exchange for the manufacturer expor...

Smartphone Tech Meme Created by Mehfuz Ahmed, Arko -10.5 yrs, 14.05.2021 A single picture displays what he sees in a Smartphone. This picture also portrays the reality in the Smartphone market, how they are chasing the three device technology. Read More Articles You may also like  Question Bank on Foreign Exchange

  Six Most Important Things to Keep In Mind for Foreign Direct Investment in Bangladesh   Foreign direct investment (FDI) in Bangladesh does not require any prior approval from the central bank or other regulatory authority. However, there are some guiding rules from the central bank of Bangladesh for Foreign Direct Investors. Unfortunately, most often, complexity arises due to misunderstanding and misinterpretation of those rules. You can find these rules detailed in the 2(c), Section-I, Chapter 9 of Guidelines for Foreign Exchange Transactions (GFET-2018), Vol. - 1. Sometimes Foreign Investors want to use their money in the FDI account or NRTA (Non-Resident Taka Account) account. Authorized Dealer (AD) does not allow them to Debit the primary investment account. The new Company with Foreign Investment is already registered with the RJSC, but documents not submitted by Foreign Investors to the related AD within 14 days of registration/ share issue favoring non-resi...