Guidelines for Foreign Eexchange Transactions-Vol-II

GUIDELINES FOR FOREIGN EXCHANGE TRANSACTIONS-VOL-II

  1. CHAPTER 2 ARTICLE 1.A.ID: SUBMISSION OF DAILY EXCHANGE POSITION STATEMENT. REF: FEPD CIRCULAR LETTER NO. 22 DATED 17.07.2013

Outward bills purchased

Banks have different methods of entries for outward bills purchased. If a bank inputs the value of any outward bill purchased immediately into their currency account, then such transaction need not be reported under this head. On the other hand, some banks debit their bills purchased to a temporary suspense account and transfer to their currency account when the bill is realised. When

the exchange position is prepared before realisation of the bill(s), the total outstanding purchased export bill should be reported under this head. After realisation of bills, such transactions are to be reported in local book and the respective head will be adjusted accordingly. The amount of bills sent for collection shall not to be reported under this head.

  1. CHAPTER 2 ARTICLE 16.B. NIL.REF: FEPD CIRCULAR NO. 29 DATED 08.07.2014.

Transactions relating to deposits into and withdrawals from FC accounts of resident corporate entities other than of EPZs shall be reported in Statement S-9 (Appendix 8) alongwith the following schedules :

RFCR-1 : (Appendix-8-I) : Country-wise receipts of equity capital into FC accounts through banking channel from aborad:

RFCR-2 : (Appendix-8-II) : Country-wise receipts of intracompany loan into FC accounts ;

RFCR-3 : (Appendix-8-III) Country-wise receipts of foreign longterm loan into FC accounts ;

RFCP-1 : (Appendix-8-IV): Amount debited for import payment

RFCP-2 : (Appendix-8-V): Amount debited for invisible payments.

RFCP-3 : (Appendix-8-VI) : Purchased by ADs for transfer to S-1 (Schedule-J/IRV).

Transactions in the foreign currency accounts of resident corporate entities (industrial concerns, gas/oil/other minerals exploration companies, power generation companies, mobile phone companies, non-bank financial institution, NGOs, microfinance institutions and other organisations maintaining FC accounts with permission from Banlgadesh Bank) shall be reported in Summary Statement S-9 along with the schedules mentioned above at this para.

  1. Transactions relating to deposits into and withdrawals from foreign currency accounts of residents opened and maintained under general permission as mentioned in Chapter 13 (section I & Section III), Guidelines for Foreign Exchange Transactions, 2009 (Vol-1) [Foreign nationals residing in Bangladesh, foreign firms registered abroad and operating in Bangladesh, Bangladesh nationals working with the foreign/international organizations operating in Banlgadesh who get their salaries and allowances in foreign currency, local and joint venture contracting firms employed to execute projects by foregin donors/international donor agencies, Diplomatic Bonded warehouses operating in Bangladesh having limited money changing licence, Resident Foreign Currency Deposit (RFCD) Accounts of Bangladesh nationals etc.)] shall be reported in Statement S-13 (Appendix 12) alongwith the following Schedules :

RPFCR-1 (Appendix-12-I) : Country-wise receipts from abroad in foreign currency accounts ;

RPFCP-1 (Appendix-12-II) : Country-wise issuance of FC in the form of cash/TC/draft/card on account of travel abroad from FC account;

RPFCP-2 (Appendix-12-III) : Country-wise transfer abroad on account of family maintenance and for other purposes from FC accounts;

RPFCP-3 (Appendix-12-IV) : Country-wise payment on account of imports from FC accounts.

  1. CHAPTER 2 ARTICLE 21: REPORTING PROCEDURE FOR IMPORTS UNDER FOREIGN LOANS AND GRANTS. REF: FEPD CIRCULAR NO. 07 DATED 16.02.2014.

The procedure with regard to coding as mentioned in this Chapter shall also apply to imports under foreign loans and grants with the following modifications:

  1. CHAPTER 2 ARTICLE ????SUBMISSION OF DAILY EXCHANGE POSITION STATEMENT. REF: FEPD CIRCULAR LETTER NO. 22 DATED 17.07.2013.

  1. CHAPTER 2 ARTICLE 23: STATEMENT OF UNRECONCILED NOSTRO ENTRIES. REF: FEPD CIRCULAR NO. 16 DATED 30.03.2014.

Besides daily exchange position statement, Authorised Dealers are also required to submit the following statements on daily basis :

(i) Inter-Bank Foreign Exchange Transactions (Appendix 49);

(ii) Statement of Day-End Balances in Nosto Accounts (Appendix-50);

(iii) Daily foreign exchange rates for dealing with public/non-bank customers;

(iv) Two-way quotation for interbank foreign exchange transactions;

Head Office/Principal Office of ADs shall submit statement of un-reconciled nostro account entries (quarter end and month end position) as mentioned in Para 7, Chapter 4 (Vol-1). Both quarterend and month-end statements shall include a summary of unreconciled nosto accout entries as per proforma given in Appendix 51.

  1. CHAPTER 2 ARTICLE 25: REPORTING OF FOREIGN EXCHANGE TRANSACTIONS OF MONEY CHANGERS. REF: FEPD CIRCULAR NO. 24 DATED 05.06.2014.

Money Changers operating in Bangladesh under licence from Bangladesh Bank shall report their foreign exchange transactions in Summary Statement S-12 (Appendix-11) alongwith the following schedules:

Schedule MCR-1 : Purchase of Foreign Exchange from Nonresident Persons (Cash/T.C) ( Appendix 11-I.)

Schedule MCP-1 : Sale of foreign exchange to Bangladeshi travellers or re-conversion allowed to foreign tourists (cash) ( Appendix-11-II).

Money Changers shall submit the above statements/schedules to Bangladesh Bank (Foreign Exchange Policy Departments of Area Offices of Bangladesh Bank, Foreign Exchange Operation Department of Bangladesh Bank Head Office, Dhaka) through their nominated Authorised Dealer (AD) banks on monthly basis.

They shall have to submit the above to their ADs making them enable for onward submission to Bangladesh Bank by 15th of the following month.

The nominated ADs shall submit the money changers’ foreign exchange reporting statements/returns (S-12) to their Head Office including soft copy in CD. The Head Office of the ADs shall submit the original copies of statements/returens including the printed copy of the contents of the CDs & soft copies to the Statistiscs Department, Bangladesh Bank, Head Office Dhaka by 15 of the following month.