Dhaka, Bangladesh (BBN) – The central bank of Bangladesh on Wednesday asked the commercial banks for taking effective measures to expedite their export proceeds repatriation to meet the growing demand for the greenback.
The advice came at a meeting of the chief executive officers of all commercial banks, held in the central bank with Deputy Governor of the Bangladesh Bank (BB) Ziaul Hassan Siddiqui in the chair.
“We’ve asked the bankers to take necessary measures to ensure stability of the country’s foreign exchange market through boosting efforts for expeditious repatriation of their export proceeds,” a senior official of the Bangladesh Bank (BB) told BBN after the meeting.
The central bank has taken the latest move against the backdrop of a rising trend about the exchange rate of US currency both in inter-bank foreign exchange market and at customer’s level.
“We’ve also advised the bankers to monitor closely their counterparts across the world for minimising their foreign exchange risk,” another BB official said.
The central bank also advised the bankers to quote foreign currency exchange rates to the overseas exchange houses, after applying due diligence and considering the situation in the international foreign exchange market. Such exchange houses are engaged in remitting money to Bangladesh.
“The BB has requested the banks to maintain the strategy for quoting exchange rates to the overseas exchange houses to avoid any unhealthy competition among them,” the central banker said.
He also said the Bangladesh Foreign Exchange Dealers’ Association (BAFEDA) will take necessary steps in this connection and intimate the central bank about their decision by the end of next week.
BBN/SSR/AD-06Oct11-1:00 am (BST)