Foreign Exchange Guidelines for Bangladesh

INTRODUCTION 1. Assalamualaikum and Good evening , on behalf of my group I welcome you all to the presentation on FOREIGN EXCHANGE GUIDELINES IN BANGLADESH AND FINDING IN THE PROCESS ITS USER FRIENDLYNESS . Ladies and Gentlemen , the very word foreign exchange refers to foreign currency in general but crucially in text-book terms it refers to the process or mechanism by which currency of one country is converted into the currency of another country . Usually such conversion takes place in the occasion of foreign trade i. e. xport or import or remittance of earnings both inward and outward by Bangladeshi and Foreign Nationals , then in case of Foreign Direct Investments or at individual level for the purpose of traveling or official visits both by Bangladeshi and Foreign Nationals . 2. Like any other country , to regulate and control smooth functioning of such Foreign Exchange in Bangladesh , Foreign Exchange Regulations are issued by the Government of Bangladesh as well as by the Ban gladesh Bank in the form of Notifications which are published in the Bangladesh Gazette .Now the Regulations which provides the legal basis for regulating all payments and dealings of foreign exchange in Bangladesh is known as Foreign Exchange Regulation (FER) Act , 1947 (Act No. VII of1947) , that was enacted on 11th March, 1947 in the then British India , subsequently adapted by Pakistan and eventually after necessary corrections and modifications by appropriate authority it was reproduced and adapted in Bangladesh and is still in vogue . Ladies and Gentlemen by law it is the Foreign Exchange Regulation Act ! 947 that rules all sorts of transactions of FE in Bangladesh . 1 AIM 3. To provide General Idea on Foreign Exchange Guidelines for Foreign Currency Transactions in common occasions in Bangladesh in a limited scale and deduce as to whether it is user-friendly . SCOPE 4. The topic will be discussed under the following heads ; a. Definitions of Certain Terms Related to Foreign- Exchange and Common Circumstances/Occasions Involving Foreign Exchange Transactions . . b. Authorized Dealers (ADs) , Money Changers and Various Types of Accounts involving Foreign Exchange . c.Foreign Exchange in International Trade ; Export and Import and Foreign Direct Investment. d. Foreign Exchange Through Remittance ; Inward , Outward and Commercial . e. Foreign Exchange Regulations for Travels and Visits by Baladeshi and Foreign Nationals. f. Userfriendlyness of Foreign Exchange Regulations in Bangladesh . 2 5. Definitions of Certain Terms Related to Foreign-Exchange and Common Circumstances/Occasions Involving Foreign Exchange Transactions . a. Definitions of Certain Terms Related to Foreign-Exchange . 1) Money . The term ‘Money’ in modern sense is used to describe actual money in the form of coin or notes or in any other form which passes freely from hand to hand as the recognised media of value exchange inside or outside the country . (2) Currency . ‘ Cu rrency ’ is a generic term and covers not only the actual coins and paper notes in a country but also any credit instruments which convey the right to wealth in terms of any given unit such as cheques , money orders , travelers cheques , promissory notes , bills of exchange etc . 3) Foreign Currency . As per FER Act 1947 ‘Foreign Currency’ means any currency other than Bangladeshi Currency i. e. Taka. (4) Foreign Exchange . As per FER Act 1947 ‘Foreign Exchange’ means foreign currency and includes any instrument drawn , accepted or issued under all deposits , credits and balance payable in foreign currency and any drafts , travelers cheques and bills of exchange expressed or drawn in Bangladeshi Currency but payable in any Foreign Currency . 5) Resident . Foreign Exchange Regulation Act, 1947 stipulates that any person who has at any time after the commencement of Act been resident in Bangladesh be treated as resident in;CONT Bangladesh until Banglad esh Bank by general or special order 3 directs otherwise. For the purpose of the said Act, ordinarily, a resident is a person, bank or firm who/which resides/has established a place of business in Bangladesh.A person is deemed to be ordinarily resident if he maintains a home in Bangladesh or resides in the country for a substantial part of each year or pays income tax as a resident of Bangladesh and falls under any of following category ; (a) persons holding Office in the Service of the Republic ofBangladesh who go abroad or who are already abroad and residingoutside Bangladesh for the time being either on duty or on leave, (b) foreign nationals residing in Bangladesh for work or self employment, c) foreign nationals residing in Bangladesh for study under student visa, (d) foreign nationals staying in Bangladesh with residence visa, (e) officials of Bangladesh Government and public sector undertakings deputed abroad on assignment with foreign governments/organisations or posted to t heir own offices (including Bangladesh Diplomatic Missions abroad) and (f) foreign nationals residing continuously in Bangladesh for six months or more would be treated as residents. (6) Non-Resident .A non-resident is a person, bank or firm who/which resides/has a place of business outside Bangladesh. Non-residents include Bangladesh nationals who go out of Bangladesh for any purpose. On the other hand, the fact that a person gives an address in Bangladesh does not necessarily mean that he should be regarded as a resident if he is, in fact, only a temporary visitor and is ordinarily resident elsewhere . 4 (7) Authorised Dealers . The term Authorised Dealer or AD would means a bank authorised by Bangladesh Bank to deal in foreign exchange under the FER Act, 1947. (8) Money Changers .The term â€Å"Money Changer† means a sole proprietorship or partnership firm/company licensed by Bangladesh Bank under â€Å"FER Act, 1947† to act as Money Changer for dealing in certain f oreign exchange transactions as directed by Bangladesh Bank from time to time. b. Common Circumstances/Occasions Involving Foreign ExchangeTransactions . Basiacally and Most commonly Foreign Exchange Transaction takes place in the following occasions ; (1) In case of any International Trade involving Export , Import . (2) In case of Remittance of All Income (both inward and outward) and All kinds of Commercial Remittances . 3) All Foreign Investments and Foreign Direct Investments (FDIs) . (4) All kinds of International Travels and Visits (Official & Unoffcial ) by both Bangladeshi and Foreign Nationals . 5 6. Authorized Dealers (ADs) , Money Changers and Various Types of Accounts involving Foreign Exchange . a. Authorized Dealers (ADs) . In exercise of the powers conferred by the Foreign Exchange Regulation Act 1947 ; certain schedule banks which are authorized to deal in Foreign Exchange by Bangladesh Bank . The selected branches of bank which are thus entrusted to transact such FE business is known as Authorized Dealers (ADs).The ADs are authorized to make all sorts of Foreign Exchange Transactions including money changing in accordance with the guidelines provided by Bangladesh Bank . As a prerequisite to become AD a schedule bank has to obtain Authorized Dealership Licence from Bangladesh Bank after following certain prescribed procedures and after fulfilling certain requirements laid down by Bangladesh Bank . Certain regulations as per FER act 1947 ; applicable for ADs are as follows ; (1) It is only Bangladesh Bank which can issue licences normally to scheduled banks to deal in foreign exchange foe becoming ADs .All applications for Authorised Dealer Licence has to be made to the General Manager, Foreign Exchange Policy Department, Bangladesh Bank, Head Office, Dhaka with a declaration that ‘Guidelines on Managing Core Risks in Banking' (as prescribed by Bangladesh Bank vide Circular No. 17, dated 07 October, 2003) pertaining to treasury function s in foreign exchange are already in place and all steps have been taken by the bank for internal monitoring and supervision of the branches for carrying out foreign exchange transactions. ) Besides, the banks also have to provide information showing that it has adequate manpower trained in foreign exchange and there is prospect to attract reasonable volume of foreign exchange business in the desired location and the applicant bank meticulously complies with the instructions of the Bangladesh Bank especially with regard to submission of periodical returns. 6 b. Authorized Money Changers . In addition to the ADs in FE , Bangladesh Bank also authorizes certain Banks located in the port area or in and around BOPs and establishments like certain Hotels and Shops to buy and sale foreign currency in exchange of local currency .Such banks and establishments in whose favour such licences of Authorization are granted are known as Authorized Money Changers . From Capacity point of view there are two types of Money Changers ; ‘ Full-Fledged Money Changers ‘ which are authorized to both purchase and sell foreign currency and Restricted Money Changers ’ which are authorized only to purchase foreign currency notes and Travellers Cheques and under compulsion are subject to the condition that all such FE collections are surrendered by them to ADs at official rate . Certain Regulations applicable for them are as follows ; 1) The authorisations are granted to persons or firms of adequate means and status who, in the opinion of the Bangladesh Bank, will be able to conduct their dealings strictly in accordance with the foreign exchange regulations. Applications for the grant of licences with limited scope should be made to the General Manager, Foreign Exchange Policy Department, Bangladesh Bank, Head Office, Dhaka. (2) Money Changer shall have no branch office. The premise to be used for money changing business shall not be used for any other business activity. Money Changers are allowed to buy foreign currency notes, coins and TCs from incoming foreign and Bangladesh nationals coming/returning from abroad. (3) Money Changers will sell foreign currency notes, coins and TCs only to outgoing Bangladesh nationals subject to a maximum limit of USD 1000 or equivalent in the form of cash and /or TC. Release of foreign exchange in excess of USD 200 or equivalent shall require valid visa. Money Changers may also sell foreign currency notes, coins and TCs to outgoing foreign nationals having duly issued encashment certificates, subject to a maximum limit of USD 500 or equivalent . (4) The Money Changers shall fix their own exchange rates for purchase and sale of foreign currency notes and coins and TC and the rates shall be displayed prominently at their counters. (5) Any change in money changer's office location shall require prior approval of Bangladesh Bank. Applications for changing office location should be forwarded to the General Manager, Fo reign Exchange Operation Department, Bangladesh Bank . c.Foreign Accounts and Credit Instrument for Foreign Exchange. Generally the movement of Foreign Currencies or FE Transactions are settled through Banking System . Usually the banks which are ADs ; maintain FE departments and indeed are the main channels through which international payments are being made . Such banks may have their branches in various countries abroad or where that is not possible may get affiliated with some overseas bank ready to act as their agent which are then known as correspondents .In order to effect FE transactions these banks maintain certain types of Accounts in their own names in various Foreign Currencies . Infact payments of various bill as per different terms of payment are made through such accounts . (1) Types of Foreign Accounts . (a) Nostro Accounts . ‘Nostro’ means ‘Ours’ in Latin . These are the accounts maintained by concerned Bangladeshi Bank with each of their c orrespondent banks . It is also known as Foreign Currency Account in some countries . 8 (b) Vostro Accounts . ’Vostro’ means ‘Yours’ in latin .The current accounts in domestic currency maintained with the local banks by any Foreign Bank are Called Vostro Accounts or Local Currency Accounts . Usually vostro accounts are opened and maintained by local banks which are acting as the Correspondents to some Foreign Banks . (c) Loro Accounts . A Foreign Banks Account of any third party , whether in foreign currency or in local currency is referred to as ‘Loro’ or ‘Their’ Account . (d) Certain Regulations about Foreign Accounts . i) ADs may maintain accounts in freely convertible currencies with their correspondents/branches abroad. i) The ADs may enter into transactions for sale or purchase of foreign currencies with other ADs, foreign correspondents and overseas branches provided that all such transactions must be reported to the Bangla desh Bank in the appropriate Returns, daily exchange position statement and daily interbank transaction statement . iii) Banks are always required to submit a ‘Statement of monthend position of un-reconciled nostro account entries' containing summary of un-reconciled nostro account entries at the end of each month. v) The ADs may obtain short term loans and overdrafts for a period not exceeding 7 days at a time from overseas branches and correspondents at the going market rates to meet their short term needs . 9 (2) Credit Instruments and Terms of Payment . FE Transaction may take effect in the form of any of the followings as per different terms of payment which can be short , medium or long ; (a) Telephone Transfers (TT) , (b) Mail Transfers (MT) , (c) Bankers Draft , (d) Bills of Exchange , (e) Letter of Credit (LC) , (f) Stock Draft , (g) Personal Cheques , (h) SWIFT , (i) Currency Notes and Coins , j) International Money Orders , (k) Travellers Cheques , (l) Credit Cards etc . The different terms of payment set by the traders in this regard can be ; Documentary Letter of Credit ( L/C ) , Documents Against Payment ( DP ), Documents on Acceptance ( DA ) , Consignment Sale , Value payable(VP) / Cash on Delivery (COD) or could be Suppliers Credit and Buyers Credit . 10 7. Foreign Exchange in International Trade ; Export and Import and Foreign Direct Investment . a. FE Regulations for Exports in General . (1) Foreign exchange regulations regarding exports cover all goods xported to all destinations regardless of whether they are subject to Export Trade Control Regulations. Similarly, nothing in the foreign exchange regulations relieves the exporters from the necessity of complying with the Export Trade Control Regulations prescribed by the Government, including the necessity of obtaining export licences in case of goods the export of which requires such licence. (2) All exports to which the requirement of declaration applies, must be declared on the EXP Form (Appendix 5/19). These forms will be supplied by the ADs to their exporter clients. 3) Payment for goods exported from Bangladesh should be received through an AD in freely convertible foreign currency or in Taka from a non-resident Taka Account. Receipts against exports under various barter and bilateral arrangements should be settled as per instructions issued by the Bangladesh Bank from time to time, (4) The ADs should, before certifying any EXP form, ensure that the exporter is registered with the CCI under the Registration (Importers and Exporters) Order 1952. The registration number should be quoted on the relative EXP forms. 11 ) In the case of commodities export of which is subject to receipt of advance payment or confirmed and irrevocable LC (such as raw jute), shipments will be allowed by the Customs only on the basis of the certificate of the AD on the EXP forms to the effect that either advance payment or confirmed and irrevocable LC has been received covering expor t of the goods mentioned on the EXP form. 6) The period prescribed by the Bangladesh Bank within which full foreign exchange proceeds of exports must be received by exporters is four months (Vide Bangladesh Bank Notification No. FE 1/77-BB dated 16th April, 1977).If the receipt of the full proceeds of any shipment is delayed beyond this period without a special or general authorisation from the Bangladesh Bank, the exporter will be liable to action under the FER Act. (7) Before paying out money against remittances received from abroad, whether against purchase of foreign currency or debit to a non-resident taka account of a foreign bank in case where purpose of the remittance is stated to be advance receipt for goods to be exported from Bangladesh, the AD should obtain a declaration from the beneficiary on the â€Å"Advance Receipt Voucher† certifying the purpose of the remittance. 8) Unless specific approval is obtained from Bangladesh Bank, the entire export proceeds in cas e of both physical and non-physical export, must be repatriated within four months of export as usual. 12 b. FE Regulations for Export Processing Zones (EPZs) . (1) EPZ s have been established by the Act namely, Bangladesh Export Processing Zone Authority Act, 1980. The following types of industrial units operate in the EPZs: (a) Type A: 100 percent foreign owned including those owned by Bangladeshi nationals ordinarily resident abroad. b) Type B: Joint venture projects between foreign and Bangladesh entrepreneurs resident in Bangladesh. (c) Type C: 100 percent Bangladeshi entrepreneurs resident in Bangladesh. The broad guidelines relating to the operation of industrial enterprises in the EPZs are contained in the † Principles and Procedures governing setting up of industries in EPZ† issued by the Bangladesh Export Processing Zone Authority (BEPZA). (2) Exports from EPZs are subject to the usual requirement of declaration of exports in EXP Form and repatriation of export proceeds.For identification, EXP forms for these exports should be rubber stamped or over printed with words † â€Å"EXPORT FROM EPZ† in bold letters. (3) Sales of Bangladeshi goods or raw materials to the enterprises in EPZ against payment in foreign currency shall be treated as exports from Bangladesh and normal foreign exchange regulations concerning declaration of exports on EXP Forms and repatriation of proceeds is applicable to these exports to the EPZ enterprises. 13 C.FE Regulations for Import . (1) Import of goods into Bangladesh is regulated by the Ministry of Commerce in terms of the Import and Export (Control) Act, 1950, through Import Policy Order (IPO) in force and Public Notices issued from time to time by the Office of the Chief Controller of Imports and Exports (CCI&E). The instructions contained in this chapter apply to sales of foreign exchange or transfers to nonresident taka accounts against import of goods into Bangladesh.In terms of the Importers , Exporters and Indentors (Registration) Order, 1981 no person can import goods into Bangladesh unless he is registered with the CCI&E or exempted from the provisions of the said Order. Before Letter of Credit Authorisation Form (LCAF) is issued or Letter of credit (LC) is opened or remittance is made for imports into Bangladesh the AD should verify that the importer is registered with the CCI&E or otherwise exempted from such registration. The AD should ensure that the registration number of the importer is invariably furnished on the IMP form.Where the importer is exempted from such registration, a suitable mention of this fact should be made on the IMP form. (2) The ADs must ensure that they deal only with known customers having a place of business in Bangladesh and can be traced easily should any occasion arise for this purpose. Opening of LCs and payments for imports into Bangladesh should be made through an AD in the area where the holder of the LCAF is resident . In case the importer is a new customer, the AD should obtain certificate from the AD through which the applicant imported earlier to the effect that no bill of entry is due/overdue for submission by the mporter. 14 (3) The aggregate amount of foreign exchange sold against an LCAF whether under LC or otherwise, should not exceed the value mentioned in the LCAF, In case where LC was opened and remittance is needed in a floating currency against which no forward booking has been made, the Taka value of the LCAF shall be deemed to have been increased to the extent of appreciation of the foreign currency for the purpose of allowing remittance by the . d. FE Regulations for Foreign Investments . Foreign investors are free to make investment in Bangladesh in the industrial enterprises excepting a few reserved sectors.An industrial venture may be set up in collaboration with local investors or may even be wholly owned by the foreign investors. No permission of the Bangladesh Bank is needed to set up su ch ventures if the entrepreneurs use their own funds. However, to avail of the facilities and institutional support provided by the Government, entrepreneurs/sponsors may secure registration with the Board of Investment (BOI). 15 8. Foreign Exchange Through Remittance ; Inward , Outward and Commercial . a. FER on Inward Remittance . 1) The term â€Å"Inward Remittances† includes not only remittance by T. T. , M. T. , Drafts etc. , but also purchases of bills, purchases of drafts under Travellers' Letters of Credit and purchases of Travellers' Cheques. (2) The ADs may freely purchase foreign currencies or raise debits to non-resident Taka Accounts of the respective bank branches and correspondents. Remittances equivalent to US$ 2000 and above should be reported. Remittances received against exports should be certified and reported on EXP Forms. 3) There is no objection to the ADs obtaining reimbursement from non-resident banks in freely convertible foreign currency in respect of Taka bills and drafts purchased by them under instructions from such a non-resident bank whether under Letters of Credit or under other arrangements. (4) If an inward remittance already reported to the Bangladesh Bank is cancelled, either in full or in part, because of non-availability of beneficiary or for any other reason, the ADs must report the cancellation of the inward remittance as an outward remittance on TM form. 16 b.FER on Outward Remittance . (1) Most outward remittances either in its entirety or upto a certain limit set by Bangladesh Bank may be approved by the ADs, following declaration of Taka as convertible for current account payments from March, 1994. However, the limits of release of foreign exchange set forth in this Guidelines are indicative . (2) All remittances from Bangladesh to a foreign country or local currency credited to non-resident Taka accounts of foreign banks or convertible Taka account constitute outward remittances of foreign exchange.ADs must exercise utmost caution to ensure that foreign currencies remitted or released by them are used only for the purposes for which they are released; they should also maintain proper records for submission of returns to Bangladesh Bank as also for the latter's inspection from time to time. (3) In all cases of purchase of foreign currency, an application must be made to an AD. For payments against imports into Bangladesh, the prescribed application form must be used .On receipt of the application from the client/customer, the ADs may effect the sale of foreign exchange if they are empowered to approve the application. If the transaction requires prior approval of the Bangladesh Bank, the application should be forwarded by the AD to the Bangladesh Bank for consideration. (4) Applications for Bangladesh Bank's prior approval for outward remittances, wherever required, should be submitted to the Bangladesh Bank only through the ADs and not by their customers directly. 7 (5) The amount rele ased must not exceed the authorised limit. Also, the instructions, if any, given in the approval with regard to the amounts to be released periodically e. g. monthly or quarterly must be strictly adhered to. (6) All authorisations for selling foreign exchange for outward remittances given by the Bangladesh Bank usually remain valid for a period not exceeding 30 days from the date of approval . c. Commercial remittance . Commercial Remittance can be both inward and outward .It originates from numerous sectors and in various forms . (1) Inward remittances are usually originated from freight and passage charges applicable for cargoes carried by Land Transportation , Airliner and Shipping industry . It also comes from individuals during their travels in various ports . (2) Whereas Outward remittance is originates from local distributors of the overseas cable channels . 18 9. Foreign Exchange Regulations for Travels and Visits by Baladeshi and Foreign Nationals. a.FER for Bangladeshi Nat ionals Travelling Abroad . 1) The amount of foreign exchange released by an AD to a traveller with the approval of the Bangladesh Bank or under general recorded by them on the traveler's valid passport as well as ticket under their stamp and signature at the time of release of such exchange. Release of foreign exchange in excess of USD 200 or equivalent will require valid visa. However, while issuing foreign exchange to the Diplomats/Privileged persons/UN personnel, Govt. fficials travelling on official duties, such endorsement in their passports need not be made . (2) The ADs may release foreign exchange upto US$ 1000 or equivalent per person during a calendar year to Bangladesh nationals proceeding by air to destinations in SAARC member countries and Myanmar; within this annual limit, upto US$ 500 or equivalent may be issued per person for overland travels to the aforesaid countries.Also for visits of Bangladesh nationals to destinations in countries other than those mentioned abo ve, upto US$ 3000 per person may be issued during a calendar year. However, foreign exchange in the form of cash must not exceed US$ 2000 at any one instance. For resident Bangladesh nationals proceeding abroad against one way ticket for valid job or migrating abroad, the release of foreign exchange shall not exceed the half of the un-used balance of the annual travel entitlement of the person concerned in the calendar year.Irrespective of foreign exchange entitlement, the outgoing passenger is permitted to take upto Bangladesh Taka 500 in cash at each time. . 19 (3) The annual quotas mentioned above are for adult passengers. For minors (below 12 years in age) the applicable quota will be half the amount allowable to adults . (4) While releasing foreign exchange for travel purposes the ADs should ensure that: (a) the intending traveller is a client of the AD bank or is sufficiently well known to the AD bank for it to be satisfied about the bonafide of the application. b) the intendi ng traveller is in possession of a confirmed air ticket (where applicable) for journey to be undertaken. (c) the amount released is endorsed on the passport and air ticket (where applicable) of the traveller with indelible ink, with the signature and name of the AD branch embossed in the passport and ticket (where applicable) (d) For official or semi-official visits abroad by the officials of Government/Autonomous/Semi-autonomous institutions etc. ADs may release foreign exchange as per entitlements fixed by the Ministry of Finance/respective competent authority from time to time. In such cases, the applicant for foreign exchange shall be required to submit the Competent Authority's Order/Notification /Circular authorising the travel abroad . 20 b. FER for Travels and Visits of Foreign National . The ADs may issue foreign currency TCs to foreign nationals without any limit and foreign currency notes upto USD 2000 per person against surrender of equivalent amounts in foreign currenci es.The TCs and foreign currency notes should, however, be delivered only on production of a ticket for a destination outside Bangladesh and the amount issued should be endorsed on the relative passports. c. Import of Foreign Currency Notes . (1) In terms of Bangladesh Bank Notification Nos FE-1/03-BB dated 6th January, 2003 and FE-1/04-BB dated 23rd March, 2004 any person may bring into Bangladesh from any place outside Bangladesh without any limit foreign currency notes or bank notes other than ; (a) Un-issued notes and coins. (b) Notes legal tender in Bangladesh in excess of Taka 500 in value.Provided that the concerned person makes a written declaration to the Customs Authorities at the time of arrival, in FMJ Form of the entire amount; no declaration will however, be necessary if the amount brought in does not exceed US$ 5000 or its equivalent in foreign currency and does not exceed Taka 500 in notes legal tender in Bangladesh. (2) Sending into Bangladesh by post/courier or othe rwise of any currency note, bank note or coin by any person from abroad without general or specific permission from the Bangladesh Bank is prohibited. 1 d. Export of Foreign Currency Notes . . (1) Any person ordinarily resident in Bangladesh may take out foreign exchange not exceeding US$ 5000 or its equivalent which was brought in without declaration at the time of returning from abroad. (2) Any person not ordinarily resident in Bangladesh including Bangladesh Nationals working abroad may take out of Bangladesh any amount in foreign exchange not exceeding the amount declared by him to the Customs Authority on arrival in Bangladesh.However, such a person may take out at the time of leaving Bangladesh foreign exchange not exceeding US $ 5,000 or its equivalent brought in without declaration to the Customs Authority on his arrival in Bangladesh. (3) It is not permissible to send currency notes and coins out of Bangladesh by post/courier or any other means. 22 10. Findings on Whether F ER is User-Friendly . On the basis of reasonable Studies and Analysis done on the topic followings could be deduced in this regard ; . Firstly , because of less of restrictions imposed on Foreign Currency Accounts the FER in general seems more user friendly for Outward Remittance as unlike other countries it facilitates easy remitting of any amount abroad . b. Secondly the FE rate being allowed to be dictated by open market rather than by central bank , it results in frequent inflation which goes in favour of export trade than facilitating import trade . c.Thirdly , FER facilitates easy inflow and outflow of foreign currency during travels or visits made by both Bangladeshi and Foreign Nationals , while being less liberal in this regard on local currency . d. Fourthly , less of monitoring facilities on ADs and Money Changers makes it possible sometimes to artificially overvalue foreign currency thus giving rise to inflation making it generally user friendly to the Foreign Currency h olders than to local currency bearers . e .Last but not the least for less of practice of existing rules and corruption of certain levels of regulating authority the country as a whole does not seem to rip the benefit out of the FER rather other countries seems to enjoy so . 23 CONCLUSION 11 . Although the presentation on Foreign Exchange Regulation was made on a limited scale , but the process allowed our group to have a proper realization about the fact that in case of our personal and professional life ; ther is no scope of being ignorant or having less of knowledge on FER .As in that case it may either make us suffer or make pay heavy price during our travels or while doing business . 12. It is thus needless to mention that it is to the best of our interest that we take good effort in acquiring knowledge in this regard and in future make best utilization of that knowledge in taking important decisions both in our personal and professional life and career . Thank you . 24