Bangladesh to amend foreign exchange act to woo more FDI

By NNN-Bernama,

Dhaka : The Bangladeshi government has taken initiative to amend foreign exchange regulation act 1947, to woo more foreign direct investments (FDI) in the country, a senior official said Thursday.

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The Finance Ministry official on condition of anonymity told Xinhua news agency that the government is keen to woo more foreign investments by making the act time-befitting for the foreign investors.

He said an expert committee, which is examining the provisions of foreign exchange regulation act 1947 in comparison with that of neighboring countries, would make its suggestions shortly.

The official said the government accelerated its move as FDI inflows to Bangladesh in the first eight months of the current fiscal year 2009-2010 (July 2009-June 2010) continued to fall.

During July-February period of the current 2009-10 fiscal year, Bangladesh attracted 63.716 percent or US$460 million less FDI compared to the same period of last year, the Bangladesh Bank (B) data showed.

According to the bank’s data, in the first eight months of the fiscal year 2009-2010 (July 2009-June 2010), net FDI inflows were recorded at US$262 million against July-February 2008-09 when they stood at US$722 million.