BB to rationalise forex transactions to attract FDI
Monday, 12 May 2008
FE Report
Bangladesh Bank (BB) is going to rationalise the foreign exchange transactions aiming to encourage the foreign investors to invest in the country, said BB Governor Salehuddin Ahmed.
"We are taking steps in rationalising the foreign exchange transactions to encourage increased foreign direct investment (FDI) and foreign portfolio investment in Bangladesh," the BB governor said while speaking at the monthly meeting of the Foreign Investors' Chamber of Commerce and Industry (FICCI) at a city hotel Sunday.
FICCI President Waliur Rahman Bhuiyan requested the governor to review the existing foreign exchange rules and regulations as well as traveling quota for facilitating the foreign investors.
He also urged the governor for taking effective measures to review corporate tax on banks and interest rates spread to help businesses.
"We have moved from political instability to political uncertainty," he said referring to the country's latest political situation.
The FICCI president also emphasises taking decision on financial issues by the central bank independently to protect the interest of the depositors and investors.
"The central bank should take all the decisions independently without any intervention or influence of the government," he said.
A foreign investor requested the central bank chief for taking quick decision on the foreign investment proposals for encouraging the investors to invest in the country.
In reply, the BB governor said the government should take quick decision on FDI.
The central bank governor also said that the regulatory bodies like the BB, Security Exchange Commission (SEC) and Board of Investment (BOI) are expected to deliver more responsive and efficient system to give quick results for facilitating foreign investment.
"The government intends to continue with these policies. Further reforms undertaken by the government will ensure more conducive policy environment," Ahmed noted.
The BB governor said, "The cost of business should be reasonable. Cost of production in Bangladesh is less compared to that of some other developing countries. Besides, cheap labours are also available here.”
Bangladesh Bank (BB) is going to rationalise the foreign exchange transactions aiming to encourage the foreign investors to invest in the country, said BB Governor Salehuddin Ahmed.
"We are taking steps in rationalising the foreign exchange transactions to encourage increased foreign direct investment (FDI) and foreign portfolio investment in Bangladesh," the BB governor said while speaking at the monthly meeting of the Foreign Investors' Chamber of Commerce and Industry (FICCI) at a city hotel Sunday.
FICCI President Waliur Rahman Bhuiyan requested the governor to review the existing foreign exchange rules and regulations as well as traveling quota for facilitating the foreign investors.
He also urged the governor for taking effective measures to review corporate tax on banks and interest rates spread to help businesses.
"We have moved from political instability to political uncertainty," he said referring to the country's latest political situation.
The FICCI president also emphasises taking decision on financial issues by the central bank independently to protect the interest of the depositors and investors.
"The central bank should take all the decisions independently without any intervention or influence of the government," he said.
A foreign investor requested the central bank chief for taking quick decision on the foreign investment proposals for encouraging the investors to invest in the country.
In reply, the BB governor said the government should take quick decision on FDI.
The central bank governor also said that the regulatory bodies like the BB, Security Exchange Commission (SEC) and Board of Investment (BOI) are expected to deliver more responsive and efficient system to give quick results for facilitating foreign investment.
"The government intends to continue with these policies. Further reforms undertaken by the government will ensure more conducive policy environment," Ahmed noted.
The BB governor said, "The cost of business should be reasonable. Cost of production in Bangladesh is less compared to that of some other developing countries. Besides, cheap labours are also available here.”