BB allowed opening FC accounts for domestic shipping firms

Staff Reporter :
Bangladesh Bank (BB) has decided domestic shipping companies, airlines, and freight forwarders can open and maintain accounts in US Dollars or other freely convertible currencies with Authorized Dealer (AD) in Bangladesh to facilitate their the upward trend of global operations.
Regarding this, the central bank’s Foreign Exchange Operation Department (FEOD) issued a circular to all Authorized Dealers of Foreign Exchange in Bangladesh to let such companies or firms to open and maintain accounts on Monday. Banks will now be able to open FC accounts for depositing 75 per cent of inward remittances, and the remainder must be encashed in local currency, to support these companies having global operation, as per circular.
According to the circular, Banks have also been permitted to open FC accounts in the names of Bangladeshi shipping companies and airlines renting ships, containers or aircraft to operators abroad. FC accounts so opened can be credited by 50 per cent of inward remittances with encashment of the remainder.
BB also allowed outward remittances from FC accounts and the money can be disbursed in connection with the management of ships or aircraft.
To bring uniformity in the reporting system, it has been decided that such shipping companies and airlines will submit quarterly statements through their authorized dealer banks within 60 days after a quarter ends. Ads also have been asked to observe due diligence in operating FC A/C and reporting.
According to the experts, the new instructions from the central bank will help the local shipping firms and airlines to reduce the dependence on foreign agents in global operations.