The central bank and commercial banks can now interchange US dollars and currency (taka) for a minimum of seven days and a maximum of ninety days, according to the Bangladesh Bank (BB).
This notice was released on Thursday by the central bank's Foreign Exchange Policy Department (FEPD). According to the BB, the new mechanism will go into action right now.
Commercial banks can now borrow the comparable amount by putting excess dollars in the BB, according to the central bank. According to the central bank announcement, this mechanism will help both commercial banks and the BB.
The banks will receive immediate funding under this agreement against excess funds. Once more, commercial banks will get an equivalent number of dollars from Bangladesh Bank if they return the money within the allotted period.
The linked sources state that commercial banks currently trade dollars and other currencies with one another for their purposes. The central bank's swap facility has now been activated.
According to the central bank, this mechanism allows for the exchange of at least $50 million or its equivalent.
The central bank will have an arrangement with the interested banks to benefit from currency exchange.
That agreement states that commercial banks will get money equal to the dollar exchange rate on the day they deposit dollars in the BB. Similarly, banks can deposit and withdraw dollars within the designated time frame.
End//voice7news.tv
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