Dhaka, Bangladesh (BBN) -The central bank of Bangladesh has planned to develop uniformity of forwards rates calculation among the banks aiming to ensure the discipline in the country’s foreign exchange market.
Under the latest moves, the Bangladesh Bank (BB), the country’s central bank, has asked nine scheduled banks to submit their methodology of calculation on forward rates within a week.
The instruction came at a meeting of senior officials of the banks held at the central bank headquarters in Dhaka on Wednesday with Mohammad Khurshid Wahab, General Manager of the BB’s Foreign Exchange Policy Department (FEPD), in the chair.
Talking to the BBN, a BB senior official said the central bank will take the next course of action after receiving the methodology of such calculation from the banks.
The latest move came against the backdrop of rising trend in forward deals with offering different rates by the banks concerned to their clients that raised question about such rates calculation.
At the meeting, the methodology of forward rates calculation with using various variables including spot exchange rate and interest rates on currencies were discussed.