Dhaka, Bangladesh (BBN) – The central bank of Bangladesh has advised three major foreign commercial banks (FCBs) to reduce the spread between BC (Bill for Collection) selling and TT (Telegraphic Transfer) clean rates gradually.
The three FCBs are Standard Chartered Bank (SCB), HSBC and Citi N.A.
The advice came at a meeting with the top-level executives of the major FCBs, held at the central bank headquarters in Dhaka on Monday with its Deputy Governor S K Sur Chowdhury in the chair.
“We’ve advised the FCBs to gradually reduce the spread between BC selling and TT clean rates,” Mr. Sur Chowdhury told BBN in Dhaka after the meeting.
The FCBs have also been asked to act carefully for ensuring the country’s foreign exchange (forex) market stability, the deputy governor added.
Currently, nine FCBs are now running their business in Bankadesh.
At the meeting, the FCBs recommended that if the central bank does not expect significant depreciation of the local currency, sufficient supply of the greenback in the market needs to be ensured.
The FCBs also mentioned that as the country’s overall balance of payments (BoP) is now in the negative territory, a shortfall of the greenback persists in the market, according to the meeting sources.
Different issues including use of third currency and SWAP were discussed at the meeting.
The FCBs have also been advised to submit their reports on their foreign currency transaction to the BAFEDA (Bangladesh Foreign Exchange Dealers’ Association) properly.