Dhaka, Bangladesh (BBN)– The much-awaited Dhaka Inter-bank Offered Rate (DIBOR) came into force formally on Wednesday aiming to establish a vibrant financial market in the country.
Bangladesh Bank (BB), the country’s central bank, Governor Atiur Rahman inaugurated the DIBOR by clicking on a computer at the central bank in the capital, Dhaka, on Wednesday to ensure transparency in the money market of Bangladesh.
The Bangladesh Foreign Exchange Dealers’ Association (BAFEDA) has been publishing DIBOR as benchmark interest rate on its website regularly since Jan. 3.
The commercial banks are now providing rates of both lending and borrowing to BAFEDA for publishing DIBOR on each working day.
The banks initially publish four tenor rates – overnight, one week, one month and three months – in line with the central bank directive. The DIBOR will be a set of indicative interest rates, which the banks will use to lend or borrow to and from each other for a specific maturity period in the Dhaka market.
In South Asia, India, Sri Lanka and Pakistan have already introduced their benchmark interest rates to help smooth operation of their financial markets.
BBN/SS/SSR/AD-07January10-1:27 am (BST)
