Forex regulations being rationalised
The central bank governor has said it is rationalising the foreign currency exchange regulations to facilitate more foreign direct investment (FDI) in the country.
"Bangladesh Bank (BB) is rationalising foreign currency exchange regulations, which will help attract more FDI," Dr Salehuddin Ahmed told the regular monthly luncheon meeting of the Foreign Investors' Chamber of Commerce and Industry (Ficci) at a city hotel yesterday.
The BB chief also suggested the government take quick decision on foreign investment proposals.
In this context he identified some major obstacles to luring FDI, which include political instability, lengthy decision-making process, corruption and underdeveloped infrastructures.
Mentioning predictions by different internationally recognised rating companies like Goldman Sachs and PricewaterhouseCoopers, Salehuddin said Bangladesh might be a good investment destination for foreign investors as the country has been maintaining a good economic growth over the last few years despite political instability.
“But, the cost of doing business should be reasonable,” he said.
Replying to queries from the businessmen, the BB governor said the central bank is an independent body and no agency influences its decision. “We are quite independent compared to other institutions,” Salehuddin said.
He said the central bank cannot allow direct import of commodities without completion of letters of credit (LCs) formalities as the system does not support it.
In response to a query, Salehuddin said, “I heard that some airlines have been fixing the rate of foreign currency, but legally they cannot do so. I will investigate the matter.”
Ficci President Waliur Rahman Bhuiyan demanded drastic reforms in the banking sector, including the guiding central bank, to ensure a better business environment.
“I think there is a reasonable ground to review the corporate tax,” Bhuiyan said, adding that since the higher bank interest rate is a major concern for the businesses now, the government should also review such rate of interest.
“We have moved from political instability to political uncertainty,” Waliur Rahman said.
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