Friday, 24 March, 2023

Banks asked to facilitate exports by freelancers

  • Staff Correspondent
  • 6 February, 2023 12:00 AM
  • Print news
Banks asked to facilitate exports by freelancers

Bangladesh Bank directed all commercial banks to facilitate export retention quota (ERQ) to freelancers and information technology-enabled services (ITeS) to increase dollar earnings from the service sector.

Foreign Exchange Policy Department (FEPD) issued a letter to the chief executives of all commercial banks and mobile financial service providers on Sunday regarding the issue.

The authorised dealer banks can provide facilities to repatriate inward remittances against ITeS and other services channeled through online payment platforms, according to the circular signed by FEPD Director Sarwar Hossain.

The ERQ facilities will enable freelancers and tech entrepreneurs to use the earned remittance in dollars instead of converting to local currency.

Small tech entrepreneurs and freelancers community welcomed the move of Bangladesh Bank to maintain the account in foreign currency.

  “Freelancers and tech entrepreneurs have to use some currencies for business development and other issues online. From now, the ERQ facility helps us to maintain a dollar account,” Dr. Tanziba Rahman, president at Bangladesh Freelancer Development Society (BFDS), told the Daily Sun.

Foreign currency out of inward remittances can be credited to exporters’ retention quota (ERQ) accounts up to the prescribed limit as per paragraphs 27(c) and 27(d) of chapter 13 of the guideline on foreign exchange transaction.

BB advised banks to provide ERQ account services to service exporters so as to enable them to carry out remittance transactions from these accounts.

The authorised dealers are also advised to issue international credit, debit and prepaid cards for nominated officials of companies, and freelancers against the balances held in their ERQ accounts for online payments abroad against bonafide requirements.

Non-ADs providing banking services to freelancers shall make arrangements with nearby ADs/CTPCs/head offices/principal offices for opening ERQ accounts and issuing international cards.

Ads providing settlement account services to MFSPs shall arrange to open ERQ accounts and to issue international cards to freelancers in accordance with FE circular No. 06/2021.