BB introduces currency swap with commercial banks

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.

To this end, the central bank on Thursday issued a notification. The new system will be considered effective immediately.

As per the notification, if commercial banks have surplus dollars, they can now borrow the equivalent amount by depositing it in the BB. Both BB and commercial banks will benefit from this system.

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.

Each deal shall be multiples of 1 million of the foreign currency starting from a minimum value of 5 million and equivalent BDT with a tenor of 7 to 90 days.

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.

Source: BSS