Foreign Remittance Conceptual Framework

Remittance means the some of money that is sent to subject for a particular purpose. Citizen usually perceives foreign remittance as foreign money. But the term foreign remittance is used in a broader sense. Normally it can simply be defined as a process of conversion of one currency to another. There are also more formal definitions, chiefly from British writers, one of them, a well known author of some popular books on foreign exchange where as definition of remittance the Dr. Paul Einzig, tells us that foreign Remittance operation is a system or process of conversion of one currency to another. The Foreign exchange regulation Act, refer that foreign exchange means foreign currency and includes any instrument drawn accepted, made or accepted, made or issued under clause (13) of article 16 of the Bangladesh Bank order , 1972 all deposit, Credits and balances payable in any foreign currency and any draft, travelers cheque, letter of credit and bill of exchange expressed or drawn in Bangladesh currency but payable in any foreign currency.