ABB meets BB, agrees to boost dollar deposits

Leaders of the Association of Bankers, Bangladesh (ABB), met with Bangladesh Bank (BB) governor on Sunday at the central bank headquarters in Dhaka.

The meeting, led by BB Governor Abdur Rouf Talukder, focused on strategies to increase the volume of US dollars deposited in Bangladeshi banks.

During the meeting, Governor Talukder emphasized the importance of utilizing the recently enacted Offshore Banking Act 2024.
This act, passed after 38 years of offshore banking operations in the country, allows non-resident individuals and foreign firms to open special bank accounts named Resident Foreign Currency Deposit (RFCD) in Bangladesh.

These Offshore Banking Units (OBUs) offer tax breaks and the potential for lucrative returns, making them particularly attractive to Bangladeshi expatriate workers.

ABB echoed BBs vision and pledged their support in promoting RFCD accounts and OBU services globally. ABB Chairman Selim R.F. Hussain acknowledged the success of similar initiatives in countries like India, Philippines, and Thailand.

He emphasized the need for a comprehensive marketing strategy to reach Bangladeshi professionals working abroad and inform them of the competitive interest rates and tax benefits available through RFCD and OBU accounts.

ABB Vice-Chairman Mashrur Arefin revealed plans to organize road shows outside Bangladesh to showcase these investment opportunities.

By effectively marketing the tax breaks and other advantages, ABB aims to significantly increase the inflow of foreign currency, particularly US dollars, and narrow the countrys financial account deficit.