Banks will be allowed to make drawing arrangements with exchange houses abroad without prior permission from the Bangladesh Bank.
In this context, banks shall make post facto reports to the Bangladesh Bank with detailed information on the arrangements, said a circular by the Foreign Exchange Policy Department of Bangladesh Bank issued a circular on Wednesday (10 August).
"In accordance with policy guidelines, Bangladesh Bank accords permission to ADs against their compliant applications for make drawing arrangements with exchange houses abroad. It has been decided that ADs may make drawing arrangements with exchange houses abroad without prior permission from Bangladesh Bank. In this context, ADs shall make post facto reports to Bangladesh Bank with detailed information of the arrangements," the circular read.
The circular also waived the requirement of letters of reference/certificates from the Bangladesh Embassy/High Commission of the respective country.
In this case, banks need to be satisfied on the basis of licenses issued by competent authorities favoring relevant exchange houses, and conducting extended due diligence.
Earlier, the Bangladesh Bank accords banks, on applications, to make drawing arrangements with exchange houses abroad as per policy guidelines of 2007.
The new regulations can help banks to go for drawing arrangements without letters from the embassy or high commission and approval from the central bank.
This can support facilitating the repatriation of wage remittances, according to insiders.