Under the ‘Currency Swap’ system, 12 commercial banks of the country have deposited foreign currency worth about 590 million dollars in Bangladesh Bank. Currency swap system is introduced to meet liquidity needs. It will also help to increase foreign exchange reserves in the country.
Bangladesh Bank spokesperson and executive director Mejbaul Haque confirmed the matter and said that 12 banks deposited 58.8 million dollars and took an equivalent amount of money by swapping currency. All banks have availed this facility for a period of 30 days.
Through this method, the equivalent amount of money can be taken from the central bank by depositing foreign currency for a minimum of 7 days to a maximum of 90 days. At the end of the period, the commercial banks can withdraw the amount of foreign currency equivalent to the money deposited. Bangladesh Bank has introduced this new system from February 15.
The Central Bank has introduced this system to reduce dependence on banks in liquidity management and to increase foreign exchange reserves. A minimum of 50 lakh foreign currency or equivalent can be exchanged through this. An official of the central bank said that this method is also playing a role in increasing the reserves of Bangladesh Bank.
Gross reserves now stand at $20.19 billion as BPM6 combined with currency swaps and remittances in the first three weeks of February. And according to Bangladesh Bank’s own calculation, the gross reserve is now 25.32 billion dollars.
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