The Bangladesh Bank has allowed foreign investors to open temporary non-resident taka account with local authorized dealer (AD)-designated banks and also with offshore banking units (OBUs) of local banks.
Referring to a previous circular issued on May 16, 2019, the Bangladesh Bank said ADs may open temporary non-resident taka accounts in the name of the proposed company/enterprise of foreign investors contemplating to invest in Bangladesh, without prior approval of Bangladesh Bank in accordance with Guidelines for Foreign Exchange Transactions, 2018 (GFET).
“Temporary foreign currency accounts may also be opened by ADs and OBUs (in case of Type A enterprises), to park fund remitted from abroad as equity by foreign investors subject to observance of the same instructions as noted in paragraph 2(C), chapter 9 of GFET,” said the central bank circular, issued by its Foreign Exchange Policy Department.
It also clarified that the regulations to open temporary non-resident taka accounts and temporary foreign currency accounts are equally applicable for proposed companies to be established in EPZs and EZs, subject to observance of the same instructions stipulated in Bangladesh Bank's Foreign Exchange Circular No 21, dated May 16, 2019.
Officials said the Type A enterprise means 100% foreign-owned, including those owned by Bangladeshi nationals ordinarily residing abroad.
