BANGLADESH BANK

GUIDELINES FOR FOREIGN
EXCHANGE TRANSACTIONS

Volume- 1
 
SUMMARISING
 

Instructions as of 31 May, 2009 issued to Authorised Dealers and Money Changers in Foreign Exchange To be read in conjunction with other instructions, subsequent amendments and modifications issued from time to time.

Preface

This publication, titled 'Guidelines for Foreign Exchange Transactions' is the successor to the last (1996) edition of the same. This is a compilation of the instructions to be followed by the Authorised Dealers & their constituents, Money Changers in transactions relating to foreign exchange. These guidelines come in two volumes. The first volume includes the instructions and the prescribed forms/declarations relating to individual transactions. The second volume delineates the procedure of reporting of foreign exchange transactions by Authorised Dealers to Bangladesh Bank, and includes the proformas for monthly returns, statements, schedules for such reporting. Both volumes include instructions as on the 31 May, 2009 and should be read with FE Circulars/Circular Letters issued subsequently.
Foreign Exchange Policy Department Bangladesh Bank Head Office, Dhaka. June, 2009.

CONTENTS

CHAPTER
1.  Introduction and Definitions
2. Authorised Dealers and Money Changers Instructions for Money Changers
3. Bangladesh Bank's Transactions with ADs
4. Foreign Currency Accounts of the ADs and Purchase and Sale of Foreign Currency

Forward Dealings in Foreign Exchange

Hedging the Price Risk of Commodities

Non-Resident Taka Accounts of Foreign Bank Branches and Correspondents
5. Outward Remittances

Inward Remittances

Dealings in Foreign Currency Notes and Coins Etc
6. Import and Export of Currency Notes and Coins, Foreign Exchange, Gold, Silver, Jewellery and Securities Etc
7. Imports

Letters of Credit and Remittances against Imports

Back to Back LCs

Deposit of Counterpart Fund in respect of Imports under Non Project Commodity Loans/Credits/Grants
8. Exports

Exports from the Export Processing Zones
9. Foreign Investment in Bangladesh

Operations in Securities
10. Commercial Remittances (Other than for Imports)
11. Private Remittances
12. Travel
13. Private Foreign Currency Accounts

Non-Resident Foreign Currency Deposit Accounts

Resident Foreign Currency Deposit Accounts

Exporter's Retention Quota Accounts

Foreign Currency Accounts for the EPZ Companies
14. Convertible and Non-convertible Taka Accounts

Private Non-Resident Taka Accounts

Non-Resident Blocked Taka Accounts

Non-Resident Investor's Taka Accounts (NITA)
15. Borrowing Abroad by Residents
16. Loans, Overdrafts and Guarantees

Credit Facilities to Industries in Export Processing Zones
17. Opening of Office and Appointment of Agents in Bangladesh by Non-Residents: Repatriation of Earnings of Commission, Fees Etc
18. Insurance Business

Reinsurance
19. Payment Through International Cards

APPENDICES


 APPENDIX      

1
Foreign Exchange Regulation Act, 1947 (VII of 1947).
2 Notifications Issued by the Government of the People's Republic of Bangladesh and the erstwhile Government of Pakistan under Foreign Exchange Regulation Act, 1947 (VII of 1947).
3 Notifications Issued by the Bangladesh Bank and the erstwhile State Bank of Pakistan under Foreign Exchange Regulation Act, 1947 (VII of 1947).
4 List of Bangladesh Bank's Offices and their Jurisdictions.
5 Specimen Forms of Applications, Declaration, etc. other than Periodic Returns & Schedules.
6
  1. Notification Issued by the Board of Investment for Obtaining Loan from Abroad by Industrial Enterprises in Bangladesh in the Private Sector.
  2. Policy Guidelines for Establishment of Drawing Arrangement between the Exchange Houses Abroad and the Banks Operating in Bangladesh.
  3. List of Required Information/Documents for seeking Permission to Act under Section 18A & 18B of Foreign Exchange Regulation Act, 1947.
  4. Guidelines to be Followed to Act as an Agent (as Satellite Channel Distributor) of Foreign Principal(s) under Section 18A of Foreign Exchange Regulation Act, 1947.