Foreign Exchange Guidelines for Bangladesh

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INTRODUCTION

1. Assalamualaikum and Good evening , on behalf of my group I welcome you all to the presentation on FOREIGN EXCHANGE GUIDELINES IN BANGLADESH AND FINDING IN THE PROCESS ITS USER FRIENDLYNESS . Ladies and Gentlemen , the very word foreign exchange refers to foreign currency in general but crucially in text-book terms it refers to the process or mechanism by which currency of one country is converted into the currency of another country . Usually such conversion takes place in the occasion of foreign trade i.e. export or import or remittance of earnings both inward and outward by Bangladeshi and Foreign Nationals , then in case of Foreign Direct Investments or at individual level for the purpose of traveling or official visits both by Bangladeshi and Foreign Nationals .

2. Like any other country , to regulate and control smooth functioning of such Foreign Exchange in Bangladesh , Foreign Exchange Regulations are issued by the Government of Bangladesh as well as by the Bangladesh Bank in the form of Notifications which are published in the Bangladesh Gazette . Now the Regulations which provides the legal basis for regulating all payments and dealings of foreign exchange in Bangladesh is known as Foreign Exchange Regulation (FER) Act , 1947 (Act No. VII of1947) , that was enacted on 11th March, 1947 in the then British India , subsequently adapted by Pakistan and eventually after necessary corrections and modifications by appropriate authority it was reproduced and adapted in Bangladesh and is still in vogue . Ladies and Gentlemen by law it is the Foreign Exchange Regulation Act !947 that rules all sorts of transactions of FE in Bangladesh .

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AIM

3. To provide General Idea on Foreign Exchange Guidelines for Foreign Currency Transactions in common occasions in Bangladesh in a limited scale and deduce as to whether it is user-friendly .

SCOPE

4. The topic will be discussed under the following heads ;

a. Definitions of Certain Terms Related to Foreign-Exchange and Common Circumstances/Occasions Involving Foreign Exchange Transactions . .

b. Authorized Dealers (ADs) , Money Changers and Various Types of Accounts involving Foreign Exchange .

c. Foreign Exchange in International Trade ; Export and Import and Foreign Direct Investment.

d. Foreign Exchange Through Remittance ; Inward , Outward and Commercial .

e. Foreign Exchange Regulations for Travels and Visits by Baladeshi and Foreign Nationals.

f. Userfriendlyness of Foreign Exchange Regulations in Bangladesh .

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5. Definitions of Certain Terms Related to Foreign-Exchange and Common Circumstances/Occasions Involving Foreign Exchange Transactions .

a. Definitions of Certain Terms Related to Foreign-Exchange .

(1) Money . The term ‘Money’ in modern sense is used to describe actual money in the form of coin or notes or in any other form which passes freely from hand to hand as the recognised media of value exchange inside or outside the country .

(2) Currency . ‘ Currency ’ is a generic term and covers not only the actual coins and paper notes in a country but also any credit instruments which convey the right to wealth in terms of any given unit such as cheques , money orders , travelers cheques , promissory notes , bills of exchange etc .

(3) Foreign Currency . As per FER Act 1947 ‘Foreign Currency’ means any currency other than Bangladeshi Currency i.e. Taka.

(4) Foreign Exchange . As per FER Act 1947 ‘Foreign Exchange’ means foreign currency and includes any instrument drawn , accepted or issued under all deposits , credits and balance payable in foreign currency and any drafts , travelers cheques and bills of exchange expressed or drawn in Bangladeshi Currency but...
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