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The Bangladesh central bank has introduced a policy to attract more foreign direct investment (FDI) by allowing foreign investors to retain foreign currency in their accounts for up to one year. Previously, foreign currency had to be converted into the local currency upon arrival. This move is expected to increase investor interest and promote investment in the country.
Under the new circular issued by the Bangladesh Bank, authorized dealers can open temporary foreign currency accounts for companies or enterprises proposed by foreign investors. The foreign currency can be used for capital expenditure payments or converted into the local currency. Companies can now utilize dollars in their foreign currency accounts to pay for the import of capital machinery.
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