In the latest directive, employers are allowed to transfer salaries in foreign currency to their foreign employees’ FC account directly
Foreign nationals working in the country from will now on get their salaries and parks on their respective foreign currency (FC) accounts, says a Bangladesh Bank notice, issued on Thursday.
Earlier, local employers have to deposit salaries of their hired foreign staff to their banks in Taka accounts. The foreign employees concerned had to remit any fund to their native countries by telegraphic transfer (TT) after converting those to currencies of their preferences.
In the latest directive, employers are allowed to transfer salaries in foreign currency to their foreign employees’ FC account directly.
"We just eased up the salary transfer process. It will reduce time without having any exchange rate costs," said Mohammad Khurshid Wahab, General Manager of Foreign Exchange Policy Department (FEPD) of the Bangladesh Bank.
The chapter 11 (section 8) of the FEPD's Guidelines for Foreign Exchange Transactions-2018 (Vol-1) permits foreign nationals working in Bangladesh with valid work permits to transfer remittances up to 75% of their net income.
In the directive, the central bank also said that balances of the FC accounts of foreign nationals working in Bangladesh are freely encashable to Taka to meet local expenses.
It says purchase of air ticket shall be permissible out of the limit of eligible proportion of transferable remittance.