BB allows local agent firms to open FCA

Bangladesh Bank has allowed local companies working as agents to open and maintain foreign currency accounts (FCA) in the name of Agent's Retention Quota (ARQ) to facilitate foreign trade.

"To meet bonafide needs, it has been decided that such companies /firms can open and maintain foreign currency accounts with authorised dealers (ADs) in the name of ARQ," the central bank said in a notification on Monday.

Earnings of the companies will have to be in foreign currency, the notification said, adding that ARQ accounts can be credited up to 10 per cent of the receipts in foreign currency.

Besides, the firms will have valid permissions from competent authorities, if applicable, and are active members of trade associations representing the relevant sectors, it added.

On the other hand, merchandise exporters and service exporters are entitled to retain a permissible portion of their repatriated export proceeds in Exporter's Retention Quota (ERQ) accounts.

Balances in ERQ accounts may be used by the exporters for bonafide business purposes.

Like exporters, resident  companies/firms working as agents/trade facilitators need to make payments abroad for bonafide business purposes, the central bank explained.

"We've allowed buying agent companies to operate the ARQ accounts to facilitate export earnings of Bangladesh," a senior official of the BB told the FE while explaining the main objective of the notification.

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