In its efforts to ensure discipline in the forex market, the Bangladesh Bank (BB) yesterday imposed a cap on the premium charged by banks on forward sales and purchases of foreign currencies.
In a notice, the BB said premium on the forward sales of foreign currencies must not exceed the policy rates of central banks of the foreign countries.
For all latest news, follow The Daily Star’s Google News channel. For example, the current maximum selling rate of the US dollar is Tk 122 per USD. For forward selling, banks can add the Federal Funds Rate to the spot rate of the US dollar.
Since the Federal Funds Rate is currently around 4.50 percent, the forward selling rate of the USD is likely to be around Tk 124 to Tk 124.50 per USD, according to industry insiders.
Previously, the forward selling rate of the USD was higher than this, as banks were calculating the rate based on the difference between the forex rate and the local currency (taka) rate.
Banks have been instructed to ensure that all their authorised dealer branches and central processing centres strictly comply with these guidelines.
Non-compliance will result in punitive actions, including financial penalties, under the relevant regulations, as per the BB notice.
