Bangladesh Bank has brought major simplifications to the rules of foreign exchange transactions to further accelerate the country's fast-growing freelancing and service export sector.
As a result of the new guidelines, the process of bringing income from abroad to the country, saving foreign exchange and receiving money through digital means for individual freelancers and service exporters will be much easier than before.
On Wednesday (July 22), the Foreign Exchange Policy Department of Bangladesh Bank issued a circular in this regard.
In this, various provisions of foreign transactions for freelancers have been updated in line with the realities of the digital economy.
According to the new guidelines, freelancers can now use platform statements, emails, invoices, contracts and other digital communication information as proof of foreign income.
As a result, reliance on conventional paper-based export documents will be reduced and the integration of banking processes with online-based service exports will be easier.
Significant exemptions have also been given for bringing small amounts of foreign income into the country.
From now on, inward remittances of up to $20,000 can be accepted without any formal declaration.
This will make the process of bringing money home faster and hassle-free for small and medium-sized freelancers.
In addition, an opportunity has been provided to receive money up to a maximum of $10,000 per transaction through Online Payment Gateway Service Provider (OPGSP).
To further expand the digital payment system, the circular has provided an opportunity to launch a dual-currency 'Freelancer Card'.
At the same time, an opportunity has been created to increase the use of Mobile Financial Service Provider (MFSP) and Payment Service Provider (PSP). As a result, it is expected that international transactions for freelancers will be easier, faster and more technology-based.
According to the new guidelines, freelancers and service exporters in the IT sector can retain a maximum of 50% of their export earnings in foreign currency as Exporters Retention Quota (ERQ).
For other service exporters, this limit has been set at 30%.
This will facilitate international software, cloud services, advertising, subscriptions or other foreign expenses.
Those concerned say that this initiative of Bangladesh Bank is timely and very important in the current reality of digital trade.
For a long time, freelancers were facing complications due to various documents and formalities to bring foreign earnings into the country.
As a result of the new guidelines, that complication will be reduced to a great extent and the tendency to bring income into the country through legitimate banking channels will increase.
According to the business community, this step will not only make it easier for freelancers to conduct business, but will also play an important role in increasing the country's formal remittance flow and strengthening the service export sector.
At the same time, they believe that this initiative will also contribute positively to the implementation of the national goal of increasing Bangladesh's participation in the global digital economy and building a knowledge-based, technology-driven export sector.