Banks allowed to open foreign currency accounts for local shippers, airlines

The central bank has allowed banks to open foreign currency accounts in the names of shipping companies, airlines and freight forwarders to support their global operations.

In view of the growing trend of global operations by shipping companies and airlines, banks may open FC accounts in the names of the companies having global operations, said the Bangladesh Bank in a notice today. 

Up to 75 per cent of the inward remittances of the companies can be kept as deposits in the accounts. The remainder has to be encashed in the local currency.

The BB allowed outward remittances from FC accounts and the money can be disbursed in connection with the management of ships or aircraft.

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.

These accounts can be used to credit 50 per cent of the inward remittances and the rest has to be encashed. The balances held in the accounts can be used to meet bonafide expenditures abroad pertaining to relative ships, containers or aircraft, said the notice.

Bangladeshi shipping companies or airlines are renting their ships, containers or aircraft to operators abroad, said the BB in a separate notice.

To bring uniformity in the reporting system, it has been decided that such shipping companies and airlines will submit quarterly statements through their authorised dealer banks within 60 days after a quarter ends.