Bank money transfer service rules relaxed

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Migrant workers are seen outside Hazrat Shahjalal International Airport. Remittances sent by Bangladeshi workers abroad fell 15% year-on-year to $21.03 billion in the financial year 2021-22, the first drop in six years, according to data from the Bangladesh Bank. Photo: star/file

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Migrant workers are seen outside Hazrat Shahjalal International Airport. Remittances sent by Bangladeshi workers abroad fell 15% year-on-year to $21.03 billion in the financial year 2021-22, the first drop in six years, according to data from the Bangladesh Bank. Photo: star/file

Bangladesh Bank (BB) yesterday eased existing rules for banks’ remittance services in a bid to increase the inflow of foreign currency and reduce volatility at the center of the foreign exchange market.

Now, banks no longer need to seek central bank approval to enter into agreements with foreign exchange bureaus to mobilize remittances from abroad, according to a notice from the central bank.

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However, once the agreements are signed, the lenders will have to provide details of the arrangements to the BB.

The BB has also removed the requirement for reference letters on exchange houses from the Bangladesh Embassy or High Commission in the respective countries.

Nevertheless, banks should act diligently and determine whether they are satisfied with the licenses of exchange houses issued by the competent authorities.

A BB official said the rule revisions would make it easier for banks to sign deals and make it easier to bring in funds.

Remittances fell 15% year-on-year to $21.03 billion in the 2021-22 financial year for the first time in six fiscal years, according to Bangladesh Bank data.

However, it was up 14% month-over-month to $2.09 billion last month.

The country’s import payment also increased to $82.49 billion in FY22 from $60.68 billion the previous year.

In this context, foreign exchange reserves amounted to 39.66 billion dollars on August 9, while they exceeded 48 billion dollars a year ago.

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