BB asks dealer banks to aid local companies to invest abroad

FE REPORT | Friday, 28 January 2022

The central bank forwarded Thursday a notification on capital- account transactions to all the foreign-currency dealer banks for assisting Bangladeshi entrepreneurs in making offshore equity investment.

Earlier, Financial Institu-ions Division (FID) of the Ministry of Finance had issued the 'Capital Account Transactions (Overseas Equity Investment) Guidelines 2022' to facilitate eligible firms to invest abroad.

By sending the guidelines, the Bangladesh Bank asked the banks to inform all eligible entities that they can submit application to the Foreign Exchange Investment Department of the BB for this purpose of spreading their wings over the globe.

The FID last week published a gazette notification of the guidelines allowing Bangladeshi entrepreneurs, particularly exporters, to make overseas equity investment up to 20 per cent of their average annual income from exports during the last five years or 25 per cent of net asset mentioned in the last audited financial report.

The exporters will be able to make overseas investment from their Exporters' Retention Quota (ERQ) account with adequate balance in there.

Some seven core conditions set in the guidelines tie the investment in foreign countries.

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