NBFI officials barred from travelling abroad

The Bangladesh Bank has now barred officials and employees of non-bank financial institutions (NBFIs), like banks and other government entities, from travelling abroad in the wake of the dollar crisis in the country.

In a circular on Sunday, the Department of Financial Institutions and Markets of the central bank said from now on, NBFI officials and employees will not be able to participate in training, study tours, exposure visits, meetings and seminars abroad.

However, if foreign organisers bear the cost, they will be allowed to go abroad. The decision was made in the wake of the post-Covid-19 economic recovery and the global crisis, the circular added.

They will be able to go abroad for Hajj and medical treatment as well as on personal expenses. In addition, foreign nationals working in NBFIs can return to their home countries, the central bank said.

Earlier on 16 May, the finance ministry directed the employees of state-owned, autonomous, semi-government institutions, state-owned banks and financial institutions to stop travelling abroad.

Later on 18 May, the Bangladesh Bank issued an internal order banning the officials from travelling abroad. In another circular issued on 22 May, the officials of the commercial banks were also banned from travelling abroad.

The central bank wants to cut foreign exchange spending to ease the pressure on the reserves due to the dollar crisis stemming from the global market volatility.

For this reason, various steps are being taken including fixing LC margins and tightening the import policy. In the sequel to that, NBFI officials and employees have been banned from travelling abroad.