$770m instant foreign currency transactions in first month
Bankers said the use of automated system for transactions in foreign currencies is bringing a new horizon in the banking system
Instant foreign currency transactions using the real-time gross settlement system inside the country stood at $770 million in the first month, September, as six foreign currencies, apart from local taka, were added to the automated transaction system.
Although the Bangladesh Bank on 4 September allowed instant transactions in the US dollar, UK pound, euro, Canadian dollar, Japanese yen, and Chinese yuan, a total of 20,553 transactions were made in two currencies – US dollar and euro – during the month, the central bank data said.
Of them, individual-to-individual transactions were 909 while the rest were bank-to-bank, mostly between private banks.
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UCB Bank was the top performer in instant foreign currency transactions, followed by Eastern Bank, Exim Bank, Prime Bank and Dhaka Bank, it added.
"Earlier, foreign currency transactions could be made through the foreign demand draft (FDD) system only, which used to take two days. In the real-time gross settlement system, foreign currency transactions can be made instantly. The cost per transaction also decreased to Tk100 from Tk500 earlier," a private bank treasury head, wishing to remain unnamed, said.
He is hopeful that the instant foreign currency transaction will increase rapidly in the coming days.
Talking to TBS, Bangladesh Bank officials said the new system facilitates the use of foreign currencies as banks can now use that on the same day of the transaction. Even an amount of foreign currency can be used by multiple banks on the same day if needed.
The Bangladesh Bank as part of its digitalisation efforts launched the real-time gross settlement system for local currency in late 2015, with an aim to facilitate safe, secured and efficient interbank payment systems. Domestic foreign currency transactions were allowed last month.
"The faster foreign currency transactions are settled from one bank to another, the faster the banks will be able to meet their needs. It will bring momentum in the banking system." a private bank managing director told TBS.
"Many banks are making foreign currency transactions using both traditional and new methods. When all the banks will use the new system, more than five thousand transactions will be done every day," he added.
