http://www.newagebd.com/2010/apr/29/busi.html#2
Govt to amend foreign exchange regulation act to attract FDI
Asif Showkat
The government has decided to amend the foreign exchange regulation act 1947 for attracting more foreign investments into the country, official sources said.
It will also amend the Bankers’ Book Evidence Act 1891 for making it time-befitting.
To this end, the finance ministry on Tuesday formed a five-member committee headed by the executive director of foreign exchange policy department of Bangladesh Bank.
Other members of the committee are deputy secretary of the law and parliamentary affair ministry (Bank and financial institutions division), general managers of the FEPD and banking regulation and policy department of Bangladesh Bank.
The committee would submit its report to the authorities concerned within two months while the Bangladesh Bank would provide the committee secretarial assistance.
‘The government wants to attract more foreign investments by making the act time-befitting for the foreign investors,’ said a senior official of the finance ministry.
The official pointed out that capital account is still not transferable under the existing foreign exchange regulation act.
The committee would give suggestions after examining the provisions of foreign exchange regulation act 1947 in comparison with that of neighboring countries.
But some Bangladesh Bank sources claimed that Bangladesh’s foreign exchange regulation act is more liberal compared to that of India and Pakistan.
They pointed out that people are transferring up to $ 5,000 from the country for medical and education purposes.
‘The country’s capital account is not still transferable but the current account is liberal,’ one of the officials said.
Executive director of D-Net Ananya Raihan told New Age that the country’s foreign exchange act is of old days compared to that of India.
‘The local investor does not invest in foreign countries as there is a bar under the country’s foreign exchange act,’ he said.
Raihan said that local people are not yet transferring their money through online channels, abiding by the foreign exchange rules.
‘Indian people are already transferring their money through online channels under its foreign exchange act,’ he added.
Former chairman of Regulatory Reforms Commission Akbar Ali Khan said that the government should conduct a thorough research into the probable changes to the foreign exchange regulatory acts.
Govt to amend foreign exchange regulation act to attract FDI
Asif Showkat
The government has decided to amend the foreign exchange regulation act 1947 for attracting more foreign investments into the country, official sources said.
It will also amend the Bankers’ Book Evidence Act 1891 for making it time-befitting.
To this end, the finance ministry on Tuesday formed a five-member committee headed by the executive director of foreign exchange policy department of Bangladesh Bank.
Other members of the committee are deputy secretary of the law and parliamentary affair ministry (Bank and financial institutions division), general managers of the FEPD and banking regulation and policy department of Bangladesh Bank.
The committee would submit its report to the authorities concerned within two months while the Bangladesh Bank would provide the committee secretarial assistance.
‘The government wants to attract more foreign investments by making the act time-befitting for the foreign investors,’ said a senior official of the finance ministry.
The official pointed out that capital account is still not transferable under the existing foreign exchange regulation act.
The committee would give suggestions after examining the provisions of foreign exchange regulation act 1947 in comparison with that of neighboring countries.
But some Bangladesh Bank sources claimed that Bangladesh’s foreign exchange regulation act is more liberal compared to that of India and Pakistan.
They pointed out that people are transferring up to $ 5,000 from the country for medical and education purposes.
‘The country’s capital account is not still transferable but the current account is liberal,’ one of the officials said.
Executive director of D-Net Ananya Raihan told New Age that the country’s foreign exchange act is of old days compared to that of India.
‘The local investor does not invest in foreign countries as there is a bar under the country’s foreign exchange act,’ he said.
Raihan said that local people are not yet transferring their money through online channels, abiding by the foreign exchange rules.
‘Indian people are already transferring their money through online channels under its foreign exchange act,’ he added.
Former chairman of Regulatory Reforms Commission Akbar Ali Khan said that the government should conduct a thorough research into the probable changes to the foreign exchange regulatory acts.
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