Lesson-2 on Foreign Exchange

Question: What are the eligible currencies for opening Foreign Currency?

Answer:

Ø    US Dollar

Ø    GBP

Ø    Euro

Ø    JP Yen

Question: What is the Initial deposit required for opening Foreign Currency Account?

Answer:

No minimum deposit required

Question. What is the interest rate applicable for Foreign Currency Account?

Answer:

Generally F/C Account are considered as a demand deposit and no interest is paid. But interest(Eurocurrency deposit rate) for FC account will be applicable if the account maintained in the form of term of Deposit for a minimum period 90 days.

Question. What are the sources of Fund for Foreign Currency Account ?

Answer:

Ø    Remittance of foreign exchange in any form

Ø    Transfer from another F/C Account.

Ø    Transfer from non-resident Taka  accounts of banks abroad

Ø    Account holder directly deposit foreign currency notes, traveler cheques , drafts etc. during the temporary visit of Bangladesh.

Ø    In case of local/joint venture contracting firm , only FC from foreign donors/international agencies to meet the expense of the project will be credit.

Ø    Consultancy fees, honoraria, foreign currency portion of eligible resident Bangladeshi nationals.

Ø    Sale proceeds received by the Diplomatic Bonded Warehouse through traveler’s cheques, drafts , cheques, credit card settlements

Question. What are the utilization of fund of Foreign Currency Account?

Answer:

Ø    Authorized Dealer can freely transfer any amount any where of the world by FTT, FDD etc as per request of the account holder from the F/C Account.( From the FC Account of Diplomatic Bonded Warehouse is not permissible . Only import payment is possible

Ø    Account holder can use the Foreign currency for travel purpose in the form of Traveler cheque & cash form.

Ø    Account holder can encash the Foreign currency in local currency.

Ø    FC may be transfer to another F/C NFCD account

Ø    To meet import obligation(In case FC held by Bangladeshi National)

Ø    In case of local/joint venture contracting firms all expenses in foreign exchange as per relevant contract also  expenses may be done  ( If any bill paid in foreign currency by the foreign mission/foreign donors from the FC account, the beneficiary of that bill is obliged to encash the same with in one month from the date of receipt of that bill.

Ø    In case of Diplomatic Bonded Warehouse, they have to encash at least 50% of gross profit (sales price of the merchandise minus purchase price of the merchandise.

Ø    No payment in FC may be made to or on behalf of any resident in Bangladesh out of FC A/C (This restriction is not applicable for foreign diplomats and privileged persons or any other person or firms who have specific authority from Bangladesh Bank to accept such payments