BB now to collect info on forex receipt from banks
Friday, 27 November 2009
Doulot Akter Mala
The central bank of Bangladesh will collect information on the foreign exchange, received in the forms of foreign direct investment and external debt, from the forex dealers and banks, instead of the recipient organisations concerned, to check any concealment of the actual inflow.
Bangladesh Bank (BB) has taken the move after it found a mismatch between information from the organisations and the banks, officials said.
The newly-introduced system will simplify the procedure of keeping accurate data on foreign exchange receipt in the country.
"Information on FDI (foreign direct investment) and external debt is one of the major economic indicators. The statistics department of the BB has been collecting the information quarterly and half-yearly through enterprise survey from the companies receiving the FDI and external debt," the BB said in a circular.
Considering its importance, from now on the BB will collect the information from the relevant banks instead of the organisations, it said.
The BB issued the circular recently asking all forex dealers and banks to furnish their information on foreign exchange received in FDI and private sector external debt (PSED) in prescribed forms.
The ADs and OBUs will submit returns as of December, 2009 and later on continue furnishing quarterly and half-yearly information.
There are three reporting forms, ED-1, ED-2 and FI-1.
In the ED-1, the banks will have to submit a summary report on the foreign exchange borrowing agreement within one month of approval of a foreign loan. They also have to inform the BB in one month if any changes are made in the agreement.
In the ED-2 form, the banks will have to submit a quarterly status report on foreign borrowing from non-residents.
In the FDI receipt form, banks will submit half-yearly report in three months after end of the half-year.
The BB has issued some directives for the banks and foreign exchange dealers to ensure accurate submission of the FDI and PSED information.
"All FDI and PSED recipient organisations will have to collect return submission certificates from the BB," the circular said.
Any organisation receiving FDI or PSED for the first time will submit the return form to the BB in one month, it added.
Information furnished in the return form will be reviewed at the time of offering any financial support or service.
FDI or PSED recipient organisations will submit the return forms at designated branches of the banks despite receiving foreign exchange through different branches.
Export processing zone organisations will also follow the same rules in submission of returns, the circular said.
The central bank of Bangladesh will collect information on the foreign exchange, received in the forms of foreign direct investment and external debt, from the forex dealers and banks, instead of the recipient organisations concerned, to check any concealment of the actual inflow.
Bangladesh Bank (BB) has taken the move after it found a mismatch between information from the organisations and the banks, officials said.
The newly-introduced system will simplify the procedure of keeping accurate data on foreign exchange receipt in the country.
"Information on FDI (foreign direct investment) and external debt is one of the major economic indicators. The statistics department of the BB has been collecting the information quarterly and half-yearly through enterprise survey from the companies receiving the FDI and external debt," the BB said in a circular.
Considering its importance, from now on the BB will collect the information from the relevant banks instead of the organisations, it said.
The BB issued the circular recently asking all forex dealers and banks to furnish their information on foreign exchange received in FDI and private sector external debt (PSED) in prescribed forms.
The ADs and OBUs will submit returns as of December, 2009 and later on continue furnishing quarterly and half-yearly information.
There are three reporting forms, ED-1, ED-2 and FI-1.
In the ED-1, the banks will have to submit a summary report on the foreign exchange borrowing agreement within one month of approval of a foreign loan. They also have to inform the BB in one month if any changes are made in the agreement.
In the ED-2 form, the banks will have to submit a quarterly status report on foreign borrowing from non-residents.
In the FDI receipt form, banks will submit half-yearly report in three months after end of the half-year.
The BB has issued some directives for the banks and foreign exchange dealers to ensure accurate submission of the FDI and PSED information.
"All FDI and PSED recipient organisations will have to collect return submission certificates from the BB," the circular said.
Any organisation receiving FDI or PSED for the first time will submit the return form to the BB in one month, it added.
Information furnished in the return form will be reviewed at the time of offering any financial support or service.
FDI or PSED recipient organisations will submit the return forms at designated branches of the banks despite receiving foreign exchange through different branches.
Export processing zone organisations will also follow the same rules in submission of returns, the circular said.