Offshore banking law to boost flow of foreign currency: Finance minister
The recently passed offshore banking law will boost flow of foreign currency to Bangladesh, Finance Minister Abul Hassan Mahmood Ali said today (24 March).
"Foreign depositors and investors have already started responding after the offshore banking law was passed. They say that they are pleased with the new law of Bangladesh. As a result, savings from abroad will rise soon with increased flow of foreign currency in the country," the minister told a seminar in Dhaka.
The Bangladesh Institute of Development Research (BIDS) organised the seminar titled "Unpacking the Economic Manifesto of the Awami League: Trends and Challenges for Tomorrow's Bangladesh" at BIDS office.
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After getting final approval from the cabinet on 28 February, the Offshore Banking Act 2024 was passed in Parliament on 5 March.
According to this law, the government will not charge any tax on the profits that foreigners make in the offshore banking units of Bangladeshi banks.
The law also gives several facilities to the depositors such as withdrawing their deposits whenever they want.
"At one point we faced some problems. People raised questions about the country's foreign reserves. Some said Bangladesh will face the same problems as Sri Lanka. But that didn't happen. Foreign currency has started coming in," said the minister.
"Offshore banking has existed in the country before. But there was no law. Law is needed for trust and security. That is why the government made the law."
