Foreign Exchange Transaction Manual

“Foreign Exchange Transactions is closely related with the country’s Balance of Payment (BOP) which integrates Current account, financial account and capital account. In Bangladesh, being a country of small basket of FOREX Reserve, we are very much conservative and restrictive in operating foreign exchange to and from Bangladesh. For that, Bangladesh Bank have issued Guidelines for Foreign Exchange Transactions (widely known as GFET) instructing all authorized FOREX operators to be very cautious and mutually selective in FOREX Transaction so that no foreign exchange is misused or abused to the interest of the country. Almost all the FOREX transactions relating to the current account are opened for AD with limited restriction for monitoring-such as post facto approval or prior approval or off-site supervision or onsite supervision. But in case of capital and financial account transaction, it is partially restricted so that bulk volume of foreign exchange cannot be out flown from the reserve in the name of capital. The book will guide you how to operate different foreign exchange transactions keeping the central bank guidelines complied. In addition, every FOREX Transaction has impact on the country’s external resources which is being built on the activities of the Exporters, Importers, Wage Earners, Shipping Operators, Investors, International Consultants of Bangladesh. The book will be very helpful for them. Remittance on International Trade payment is not discussed in the separate books ‘The Export Import Risk Management’ which will be published later.”