The taka will be sold in exchange for approved foreign currencies at the spot rate at the near-leg for conventional commercial banks.
At the far-leg, the deal will be settled by applying the same exchange rate with a swap point based on the interest rate differential considering the prevailing benchmark rate of foreign currencies, according to domestic media reports.
Bangladesh’s central bank has introduced currency swaps with banks for the first time.
The taka will be sold in exchange for approved foreign currencies at the spot rate at the near-leg for banks.
At the far-leg, the same exchange rate will be applied with a swap point based on the interest rate differential based on the benchmark rate of foreign currencies.
For Shariah-based banks, the taka will be sold in exchange for foreign currencies at the spot rate at the near-leg. At the far-leg, the deal will be settled by applying the same exchange rate, the central bank said.
The swap deal will be executed within the counterparty limit to be set by the forex reserve and treasury management department of the central bank.
Each deal will be in multiples of one million of foreign currency, starting from a minimum value of five million and equivalent taka with a tenure of seven days to 90 days. The rollover may be allowed by applying the prevailing rates, the bank’s notice said.
Many banks have no excess dollars now and the demand for the currency is high as well.
Fibre2Fashion News Desk (DS)
