Bangladesh Bank launches RTGS for instant forex trading
Bangladesh Bank has launched instant, bank-to-bank foreign currency transactions through online real-time gross settlement.
Banks clear and settle primarily in US dollars, pounds, euros, Canadian dollars and Japanese yen.
Bangladesh Bank Governor Abdur Rouf Talukder officially inaugurated the RTGS program at the central bank’s headquarters in Motijheel on Sunday. Deputy Governors Ahmed Jamal and Kazi Sayedur Rahman, President of the Federation of Bangladesh Chambers of Commerce and Industry Md Jasim Uddin, President of the Metropolitan Chamber of Commerce and Industry Saiful Islam, President of the Bangladesh Bankers Association Bangladesh Selim RF Hossain and senior central bank officials, among others, were present at the event.
Previously, these five currencies – the US dollar, the British pound, the euro, the Canadian dollar and the Japanese yen – were settled in the traditional transaction system. In this method, banks use paper documents and bank officials settle the transaction.
It was time consuming and expensive, said Md Serajul Islam, executive director and spokesperson of Bangladesh Bank.
From Sunday, banks will be able to settle transactions instantly without any hassle through the RTGS system, he said.
The yuan, the Chinese currency, can be exchanged for five foreign currencies.
Bangladesh Bank issued a notification on August 28 to launch instant currency trading via RTGS.