Dhaka, Bangladesh (BBN) - Bangladesh Bank (BB) has launched a new Foreign Exchange Interventions strategy aiming to ensure the smooth functioning of existing exchange rate regime, with a view to transitioning to the full exchange rate flexibility in the near-term.
Under the new Exchange Rate Management Regime, Authorized Dealers (ADs) are allowed to purchase and sell foreign currency from/to their customers and other dealers at freely negotiated rates, according to a notification, issued by the central bank on Tuesday.
Effective from January 5, 2025, ADs shall provide information twice on each business day for all foreign exchange transactions at or above 1.00 lac US dollar or equivalent. ADs shall, before 11:30 am, report for transactions executed till 11:00 am.
ln the afternoon, ADs shall provide information of transactions executed from 11:00 am to 5:00 pm before 5.30 pm. The template for reporting the transactions will be provided by the BB.
Effective from January 12, 2025, the central bank will publish a daily reference benchmark exchange rate, defined as the weighted average of freely quoted exchange rates in market transactions with customers and other dealers.
“To facilitate the benchmark reference exchange rate, the corresponding guideline is available in Bangladesh Bank website,” it noted.
BBN/SSR/AD