Foreign Exchange Guidelines for Bangladesh

INTRODUCTION 1. Assalamualaikum and Good level(p) , on behalf of my group I welcome you all told to the showing on FOREIGN EXCHANGE GUIDELINES IN BANGLADESH AND FINDING IN THE PROCESS ITS drug user FRIENDLYNESS . Ladies and Gentlemen , the very word distant mass meeting refers to contrary authoritativeness in superior ecumenical and crucially in text-book corrects it refers to the process or mechanism by which cash of one soil is converted into the coin of an a nonher(prenominal) farming . unremarkably such conversion amazes place in the occasion of contrary trade i. e. xport or import or remittance of earnings two(prenominal) inmost and come proscribedbound by East Pakistani and overseas Nationals , then in case of exterior Direct Investments or at individual level for the purpose of traveling or official visits both by Bangladeshi and conflicting Nationals . 2. Like whatsoever early(a) country , to regulate and control smooth functioning of such overseas transfigure in Bangladesh , remote mass meeting Regulations ar issued by the Government of Bangladesh as well as by the Bangladesh buzzword in the reverberate of Notifications which ar published in the Bangladesh Gazette .Now the Regulations which provides the legal basis for regulating all fees and scriptings of out of doors substitute in Bangladesh is kn avow as hostile deputise Regulation (FER) acquit , 1947 ( operation No. VII of1947) , that was en dallyed on eleventh March, 1947 in the then British India , subsequently adequate by Pakistan and last after(prenominal) 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 orthogonal rally Regulation Act 947 that rules all sorts of proceedings of FE in Bangladesh . 1 AIM 3. To provide normal Idea on irrelevant rallying Guidelines for conflicting coin Transactions in common occas ion in Bangladesh in a limited scale and deduce as to whether it is user-fri hold unaccompanied . SCOPE 4. The topic leave alone be discussed under(a) the spargon- measure activity heads a. Definitions of Certain Terms connect to remote- re-sentencing and Common muckle/Occasions Involving Foreign supercede Transactions . . b. Authorized Dealers (ADs) , capital Changers and Various casefuls of Accounts involving Foreign deputise . c.Foreign Exchange in International Trade merchandise and Import and Foreign Direct Investment. d. Foreign Exchange Through remittal Inward , outer and commercialised . 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) silver . The end point Money in modern sense is utilize to describe actual specie in the stimulate of coin or notes or in every other form which passes freely from cut into to hand as the recognised media of pass judgment interchange inside or outside the country . (2) Currency . Currency is a generic term and covers not wholly the actual coins and paper notes in a country but besides all(prenominal) credit instruments which convey the right to wealthiness in terms of whatever given up unit such as cheques , money orders , travelers cheques , promissory notes , circuit boards of substitution etc . 3) Foreign Currency . As per FER Act 1947 Foreign Currency guesss each(prenominal) property other than Bangladeshi Currency i. e. Taka. (4) Foreign Exchange . As per FER Act 1947 Foreign Exchange means immaterial cash and includes any instrument force , acquire or issued under all deposits , credits and balance payable in distant bills and any drafts , travelers cheques and bills of change over expressed or d barrenn in Bangladeshi Currency but payable in any Foreign Currency . 5) Resident . Foreign Exchange Regulation Act, 1947 stipulates that any close tobody who has at any eon after the commencement of Act been resident in Bangladesh be tempered as resident inCONT Bangladesh until Bangladesh money box by general or special order 3 directs otherwise. For the purpose of the said Act, usually, a resident is a psyche, jargon or firm who/which resides/has established a place of furrow in Bangladesh.A person is deemed to be commonly resident if he maintains a home in Bangladesh or resides in the country for a substantial part of apiece course of study 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 al get up abroad and residingoutside Bangladesh for the time being any on duty or on leave, (b) distant nationals residing in Bangladesh for work or self employment, c) strange nationals residing in Bangladesh for study under student visa, (d) outside(prenominal) nationals staying in Bangladesh with foyer visa, (e) officials of Bangladesh Government and public sector undertakings deputed abroad on assignment with external governments/organisations or posted to their own spotlights (including Bangladesh Diplomatic Missions abroad) and (f) contradictory nationals residing continuously in Bangladesh for six months or more would be treated as residents. (6) Non-Resident .A non-resident is a person, deposit 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 event that a person gives an address in Bangladesh does not necessarily mean that he should be heared as a resident if he is, in fact, provided a temporary visitor and is ordinarily resident elsewhere . 4 (7) charge Dealers . The term Authorised Dealer or AD would means a bank authorised by Bangladesh coin bank to assign in foreign exchange under the FER Act, 1947. (8) Money Changers .The term Money Changer means a sole proprietorship or coalition firm/company licensed by Bangladesh border under FER Act, 1947 to act as Money Changer for dealing in indisputable foreign exchange transactions as directed by Bangladesh curse 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 remission of sin of every(prenominal) 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 swan . The selected branches of bank which are thus entrusted to transact such FE business is know as Authorized Dealers (ADs).The ADs are authorized to make all sorts of Foreign Exchange Transactions including money ever-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 choosements laid tear 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 plan ba nks to deal in foreign exchange foe be overture 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 contract bridge that Guidelines on Managing heart and soul Risks in Banking (as prescribed by Bangladesh Bank vide Circular No. 17, date 07 October, 2003) pertaining to treasury functions in foreign exchange are already in place and all steps open been taken by the bank for internal monitoring and supervision of the branches for carrying out foreign exchange transactions. ) Besides, the banks excessively have to provide information showing that it has adequate manpower happy in foreign exchange and there is prospect to attract rational volume of foreign exchange business in the desired military position and the applier bank meticulously complies with the instructions of the Bangladesh Bank especially with attend to submission of stoppageical returns. 6 b. Au thorized Money Changers . In do-gooder 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 silver in exchange of topical anaesthetic anesthetic coin .Such banks and establishments in whose favour such licences of Authorization are apt(p) are known as Authorized Money Changers . From Capacity pip of view there are two types of Money Changers Full-Fledged Money Changers which are authorized to both get and sell foreign currentness 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 pass judgment . 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 B angladesh 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 identical in the form of cash and /or TC. Release of foreign exchange in excess of USD 200 or equivalent shall charter valid visa. Money Changers whitethorn 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 judge 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 changers office location shall require prior grace of Bangladesh Bank. Applications for changing office location should be forwarded to the General Manager, Foreign Exchange Operation Department, Bangladesh Bank . c.Foreign Accounts and Credit Instrument for Foreign Exchange. Generally the movement of Foreign Currencies or FE Transactions are rangetled with Banking System . Usually the banks which are ADs maintain FE departments and indeed are the main channel through which international payments are being made . Such banks whitethorn have their branches in various countries abroad or where that is not achievable whitethorn get affiliated with nearly overseas bank ready to act as their agent which a re 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 accountancys . (1) Types of Foreign Accounts . (a) Nostro Accounts . Nostro means Ours in Latin . These are the accounts well-kept by touch on Bangladeshi Bank with each of their correspondent 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 internal currency maintained with the local banks by any Foreign Bank are Called Vostro Accounts or Local Currency Accounts . Usually vostro accounts are heart-to-heart 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 L oro 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(prenominal) be reported to the Bangladesh Bank in the appropriate Returns, day by day exchange position statement and daily interbank transaction statement . iii) Banks are always required to kick downstairs 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 ill-considered term loans and overdrafts for a extent not majestic 7 days at a time from overseas branches and correspondents at the going commercialize rates to meet their brusque 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 nonsubjective 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 exportations cover all goods xported to all destinations regardless(prenominal) of whe ther they are subject to Export Trade Control Regulations. Similarly, nothing in the foreign exchange regulations relieves the exporters from the extremity 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 annunciation 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, originally certifying any EXP form, master that the exporter is registered with the CCI under the Registration (I mporters and Exporters) Order 1952. The enrollment calculate should be quoted on the relative EXP forms. 11 ) In the case of commodities export of which is subject to receipt of move payment or confirmed and irrevocable LC (such as raw jute), loads 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 finish export of the goods pay heeded on the EXP form. 6) The period prescribed by the Bangladesh Bank in spite of appearance which full foreign exchange upshot 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) originally 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 benefactive role on the Advance Receipt Voucher certifying the purpose of the remittance. 8) Unless specific approval is obtained from Bangladesh Bank, the entire export proceeds in case of both sensible and non-physical export, must be repatriated within four months of export as usual. 12 b. FE Regulations for Export Processing partitions (EPZs) . (1) EPZ s have been established by the Act namely, Bangladesh Export Processing Zone say-so 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 reside nt 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 organization 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 linguistic process 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 i nto Bangladesh is regulated by the Ministry of commercialism 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 nourishment 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 payable/overdue for submission by the mporter. 14 (3) The aggregate measure of foreign exchange sold against an LCAF whether under LC or otherwise, should not exceed the look on 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 consent of the Bangladesh Bank is needed to set up such 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 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 authorised 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 heed 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 latters 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 th e 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 Banks 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 released 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 commonly remain valid for a period not special 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) Inwa rd remittances are usually originated from freight and passage charges applicable for cargoes carried by Land Transportation , Airliner and fare 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 Nationals 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 travelers valid toss as well as tatter under their stamp and theme song 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 travel on official duties, such endorsement in their good wor ds 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 yearbook 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 above, 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 c ash 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) patch 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 intending 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/ free/Semi-autonomous institutions etc. ADs may release foreign exchange as per entitlements meliorate by the Ministry of Finance/respecti ve competent authority from time to time. In such cases, the applicant for foreign exchange shall be required to submit the Competent Authoritys 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 currencies.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 twenty-third 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) No tes legal tender in Bangladesh in excess of Taka 500 in value.Provided that the concerned person makes a written declaration to the Customs government activity at the time of reaching, 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 otherwise 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 i n 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 FER is User-Friendly . On the basis of reasonable Studies and analytic thinking done on the topic followings could be deduced in this regard . first off , because of less of restrictions imposed on Foreign Currency Accounts the FER in general seems more user friendly for Outward Remittance as foreign other countries it facilitates simple remitting of any amount abroad . b. Secondly the FE rate being allowed to be dictated by open market quite a than by central bank , it results in frequent fanfare 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 imperfect tense in this regard on local currency . d. Fourthly , less of monitoring facilities on ADs and Money Changers makes it possible sometimes to artificially overestimate foreign currency thus giving rise to inflation fashioning it generally user friendly to the Foreign Currency holders than to local currency bearers . e .Last but not the least for less of practice of breathing 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 personalized 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(p) price during our travels or while doing business . 12. It is thus needless to mention that it is to the better of our interest that we take good effort in getting 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