Bangladesh Bank introduces currency swap with commercial banks

The Bangladesh Bank (BB) has introduced US dollars and currency (taka) swap between the central bank and commercial banks for a minimum of seven days to a maximum of 90 days.

The Foreign Exchange Policy Department (FEPD) of the central bank issued this notification on Thursday. The BB said the new system will be considered effective immediately.

The central bank said that if commercial banks have surplus dollars, they can now borrow the equivalent amount by depositing it in the BB. Both the BB and commercial banks will benefit from this system, stated the central bank notification.

Under this deal, the banks will get instant money against surplus dollars. Again, by returning the money after the specified time, the commercial banks will get an equivalent amount of dollars from Bangladesh Bank.

According to the related sources, currently, commercial banks exchange dollars and money with each other for their own needs. Now the facility of swap with the central bank has started.

The central bank said that a minimum $50 million or its equivalent can be exchanged under this system.

To take advantage of currency exchange, the central bank will have an agreement with the interested banks.

According to that agreement, the day commercial banks deposit dollars in the BB, they will get an equivalent amount of money as the dollar exchange rate of that day. Similarly, after the specified time, banks can deposit the money and withdraw the dollar.