The Foreign Exchange Regulation Act, 1947 (Bangladesh)

The Foreign Exchange Regulation Act, 1947 (Bangladesh) is legislation originally enacted in British India in 1947, primarily aimed at regulating payments, dealings in foreign exchange, and securities that affect foreign exchange. Following the partition of India and the subsequent independence of Bangladesh (formerly East Pakistan), this Act, with amendments, continued to be the primary legal framework governing foreign exchange transactions within Bangladesh.

The Act's main objectives included controlling the outflow of foreign exchange, managing the country's foreign exchange reserves, and promoting economic stability by regulating international trade and financial transactions. Key provisions of the Act typically involved requiring authorization from the central bank (Bangladesh Bank) for certain types of foreign exchange transactions, including remittances, investments abroad, and import/export activities. The Act also empowered the government and the central bank to issue regulations and guidelines for the implementation of its provisions.

Over time, as Bangladesh's economy evolved and liberalized, the Foreign Exchange Regulation Act, 1947, was gradually superseded by more modern legislation. In 2003, it was replaced by the Foreign Exchange Regulation Act, 1947, which reflected a more liberalized and market-oriented approach to foreign exchange management. While the original Act is no longer in force, its historical significance lies in its role in shaping Bangladesh's early foreign exchange policy and laying the foundation for subsequent legal frameworks in this area.