Bangladesh will remove all the restrictions on foreign exchange transactions in current account by the fourth week of April by accepting Article 8 of the International Monetary Fund(IMF).

Finance Minister M Salfur Rahman disclosed this while addressing a function organised at the Osmany Memorial Hall yesterday to award the top ten listed companies of the Dhaka Stock ExchangefDSE).

He said the formal proposal of accepting Article 8 shifting from its present status at Article 14 would be placed at the IMF Board during his forthcoming visit to Washington in mid-April.

Bangladesh, along with Over 100 IMF member countries, accepted Article 14 from the beginning of its membership as an interim arrangement towards making its currency convertible in the current account transactions.

In October last year, the

government declared the Taka fully convertible in the current account without reference to Article 8 of the IMF. although two restrictions and some moderate restrictions continued to persist in its transactions.

The two restrictions are in sending money for family maintenance and school-level education of Bangladeshi chil-' dren abroad while there are moderate restrictions in carrying money for business trips and travelling abroad.

Acceptance of Article 8 by the country would also mean that there will be no restriction In investing in Bangladesh by the foreign investors and remitting the profits to their homeland.'although such restrictions were removed much earlier by the government. Some 77 countries have accepted Article 8 of the IMF so far.

Finance Minister, in his speech, also said restrictions in forex transactions on capital account would also be withdrawn soon.

Referring to the increased foreign investment in the country’s capital market. Salfur Rahman said the foreign investors are coming to invest in the country because of a favourable investment climate restored by the government by taking appropriate measures. He also referred to a solid exchange system in this regard; which, according . to the Finance Minister, brought about substantial changes In the attitude of the foreign investors by restoring their confidence.

He said the country has been striving for a self-reliant economy, but still 70 per cent of the development budget come from outside.

Salfur deplored that the nation is still )n the vicious cycle of low Income and low savings. He. however, stressed the need for promoting savings to intensify the investment activities.

The Minister also emphasised the need for an outward-oriented investment friendly climate for rapid growth In the private sector.