Bangladesh Bank has allowed Offshore Banking Units (OBUs) of domestic banks to directly buy and sell foreign currencies and execute cross-currency swap transactions to simplify foreign exchange fund management and expand low-cost trade financing opportunities.
In a circular issued on Monday (September 21), the central bank announced that OBUs can now trade foreign currencies directly with their Domestic Banking Units (DBUs), other Authorized Dealer (AD) banks, domestic OBUs, and foreign counterparties. This regulatory easing aims to enhance foreign exchange liquidity management, streamline asset-liability alignment, and harmonize local offshore banking operations with internationally recognized treasury practices.
Under the new directive, banks will be able to source foreign exchange funds at lower costs and hedge against exchange rate volatility. The central bank emphasized that all transactions must directly correlate with approved customer trades, actual funding needs, liquidity management, or foreign exchange risk mitigation strategies, ultimately making import-export trade financing more competitive for businesses.
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Reported by Staff Reporter • Edited by the Daily Best News desk. Send corrections to [email protected].
