BB eases foreign investment policy further

Staff Correspondent | Published: 23:10, Jul 07,2020

 
 

The Bangladesh Bank has eased its foreign investment policy further by allowing foreigners to reinvest their funds in the country that the investors would receive as dividends in their foreign currency accounts.

In the recent time, the central bank has granted a number of policy relaxations for the foreign investors with a view to attract foreign investments, especially those who were planning to leave China.

Under the policy relaxation, the central bank allowed the foreign investors to withdraw investments in non-listed companies without the central bank’s approval on condition that they complied with a number of conditions.

A BB circular issued on Tuesday said that the foreign investors would be allowed to park their dividends in FC accounts opened with the country’s banks and they would be allowed to remit the funds either to the destination country or in Bangladesh.

In case of encashment from the FC accounts in local currency, it would be treated as inward remittance while crediting into the FC accounts would be treated as outward remittance.

The investors would also be allowed to invest the balance in the FC accounts for purchasing securities, the BB circular said.

Allowing the foreigners to buy shares from the balance in their FC accounts would be act as another form of encouragement for them, an official of the central bank said, adding that such investments would also be treated as foreign direct investment.

BB executive director Mohd Humayun Kabir told New Age that the central bank had brought a number of relaxations in the recent time in its policy with a view to attain higher foreign direct investments for the country.

With the latest change in policy, the central bank has made encashment and remittance of money by the foreign investors from their FC accounts more convenient, Humayun said.

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