The Bangladesh Bank has asked banks to avoid an unnecessary delay in issuing no-objection certificates (NOCs) to foreign companies seeking to change their authorised dealers for foreign transactions.
The new directive is part of a series of initiatives to boost foreign investment in Bangladesh, said a central bank official who wishes not to be named.
"These guidelines will help at least a little to reduce the suffering of foreign companies," he added.
In a circular on Sunday, the Foreign Exchange Investment Department of the central bank said according to the Foreign Exchange Transaction Guidelines, branches, or liaison offices of foreign companies or entities representing them may change their authorised dealers (ADs) in case of foreign transactions.
But, if an entity wants to be associated with a bank as a new AD, it has to take a NOC from the previous AD. As can be seen in many cases, an unnecessary delay is made in issuing a NOC.
In such a reality, in the case of branches or liaison offices or representative offices of foreign companies conducting operations in Bangladesh, ADs have to give NOC as soon as possible.
According to the central bank, in 2020, the net foreign investment was $2.56 billion, which is 11% down from $2.87 billion in the previous year.