Exporters may transfer 75pc of foreign employees’ remunerations from ERQ accounts

Bangladesh Bank (BB) has further relaxed the foreign currency transfer by foreign employees in exporting companies in Bangladesh, reports UNB.

As per a new circular of Bangladesh Bank issued on Tuesday, exporter-employers may transfer from their Exporter's Retention Quota (ERQ) accounts up to 75 per cent of net monthly income of the foreign employees in equivalent foreign currency to their FC accounts maintained and operated in terms of guidelines for foreign exchange transactions (GFET).

In the context of transfer of net monthly income from ERQ accounts of relevant exporter-employers, authorised dealers (ADs) shall observe the instructions of Bangladesh Bank, including verification of the authenticity of the work permits issued by the competent authorities, said the directives.

The circular referred to a previous circular issued on June 23 this year, which said that up to 75 per cent of net monthly income in equivalent foreign currency has been permitted to be credited to FC accounts of the expatriate employees maintained and operated in terms of GFET from FC accounts of eligible employers.

BB officials said the new moves from Bangladesh Bank came as part of the government's initiative to ease of doing business in the country.

Earlier, Bangladesh Bank allowed foreign investors to deposit their dividend with the foreign currency (FC) accounts maintained with banks in the country with certain conditions.

A Bangladesh Circular, issued on July 7 this year by Foreign Exchange Policy Department, said that to bring smooth operations relating to foreign investment in Bangladesh, it has been decided that dividend payable to foreign shareholders may be credited to their FC accounts maintained in Bangladesh, subject to observance of some instructions.

These include that the authorised dealers (AD) designated banks shall satisfy themselves that the fund in equivalent foreign currency to be credited in FC accounts on account of dividend has arrived in accordance with the Guidelines for Foreign Exchange Transactions (GFET) and its reporting has been made.

Encasement of balances held in FC accounts shall be treated as inward remittances for bonafide local disbursements, subject to Form-C procedures, said the circular.