Banking Training Materials

Overview of Foreign Exchange Foreign Exchange Regulation Act, 1974 Foreign Exchange Regulation Act, 1947 (Act No. VH of 1947) enacted on 11th  March, 1947 in the then British India provides the legal basis for regulating certain payments, dealings in foreign exchange and securities and the import and export of currency and bullion. This Act was first adapted in Pakistan and then, in Bangladesh. The Act is reproduced. Bangladesh Bank is responsible for administration of regulations under the Act. Bangladesh Bank’s offices and their jurisdictions provide a list. Basic regulations under the PER Act are issued by the Government as well as by the Bangladesh Bank in the form of Notifications, which are published in the Bangladesh Gazette. Notifications issued by the Bangladesh Government and the erstwhile Government of Pakistan and the Bangladesh Bank and the erstwhile State Bank of Pakistan is reproduced. Directions having general application are issued by the Bangladesh Ban...

Objectives of Exchange Control (i) Protection of Balance of Payments. One of the important objectives of exchange control is protection of balance of payments. When the balance of payments deficit of a nation becomes large an chronic an its automatic correction is not possible, certain active measures have to be adopted. In normal times the adverse balance of payments caused value of country's currency to fall and helps in restoring equilibrium. But there are conditions under which a fall in the exchange value and currency has no effect on imports and exports. Under such situations, measures are adopted to stabilize the exchange value of currency at level higher than would b possible under free conditions. (ii) Reducing Burden of Foreign Debt. The exchange value of a currency is sometimes fixed and maintained at higher level to lighten the burden of foreign debts contracted in terms of foreign currencies. By overvaluing currency, the foreign exchange earnings of the cou...

Foreign Exchange Regulation Act 1947, Guidelines of Foreign Exchange Transactions Sub: Foreign Exchange Regulation Act 1947, Guidelines of Foreign Exchange Transactions, Import Policy, Export Policy, other Govt. notifications, F.E. Circular etc. Importance of knowledge on all such documents. What is Foreign Exchange? Foreign exchange is the conversion or exchange of one country's currency into another currency.   Foreign exchange also refers to the global market where currencies are traded virtually around-the-clock. The term foreign exchange is usually abbreviated as "forex" and occasionally as "FX." In a free economy, a country's currency is valued according to factors of supply and demand. If we consider 'Foreign Exchange' as a subject, then it means all kinds of transaction related to Foreign Currency, as well as currency Instruments, such as Draft, MT, TT, TC, Payment Order & Foreign Trade. In other wards Foreign E...