The Government of Bangladesh has allowed the exporters of the country to make overseas equity investments, subject to adequate balance in their export retention quota (ERQ).
Media reports maintained this adding the Foreign Exchange Investment Department of Bangladesh’s central bank, Bangladesh Bank, has issued a directive to all authorised dealers of foreign exchange transactions in this regard recently.
Meanwhile speaking to the media, Vice-President of Bangladesh Knitwear Manufacturer & Exporters Association (BKMEA) Fazlee Shamim Ehsan underlined the initiative will facilitate easy overseas investments while adding excessive investment abroad might have a negative impact on the country’s economy even as some have expressed concern about scope for inappropriate use and abuse of the process even though the new guidelines have been largely welcomed by the exporters.
