The Bangladesh Bank yesterday announced a series of steps aimed at promoting Interbank foreign exchange transactions and also extended the normal banking time by two hours starting from today.

The decisions were taken at a high-level meeting presided over by Finance Minister M Saifur Rahman at the Bangladesh Bank. It was also attended by the Governor of the central bank, the Secretary. Ministry of Finance and other senior officials of both the bank and the ministry as well as prominent officials of the commercial banks.

According to a statement from the central bank, starting today the banking hours for public transactions will be from 9:00 am to 3:00 pm on all weekdays except Thursday- On Thursday, banks will transact business from 9:00 am to 12:00

noon.

The foreign exchange regime has been liberalised further to make the Taka convertible.

Henceforth, the Bangladesh Bank will no longer determine the retail rates at which the authorised dealers sell and buy foreign currency to and from the public. The rates will now be fixed by the authorised dealers themselves

The holding limits of foreign exchange of the authorised dealers was increased to 20 per cent, from the existing limit of 15 per cent of the outstanding letters of credit (L/C) liabilities.

The bank also Increased the spread between the buying and selling rates of foreign exchange to and from the authorised dealers, from Tk 0.10 to Tk 0.20. This was done, the bank statement added, to activate the inter-bank foreign exchange transactions.

Furthermore, to develop the Inter-bank foreign exchange market, the ’Foreign Exchange Dealers' Association' was formed by the authorised dealers. The bank will formulaic a code of conduct for the dealers and for the efficient management of the association.

The Bangladesh Bank from now on will not buy from the authorised dealers any amount below 50.000 US dollars. This is being done, the statement said, to promote competitive Inter-bank foreign exchange transactions. The Bank will buy only multiples of US dollar 10.000. for example. US S 60.000. 70,000 and so on.

The Bangladesh Bank will not extend any forward cover facility to the authorised dealers against any foreign currency. The authorised dealers shall be free to take counter-cover among themselves or they may cover themselves In the overseas foreign exchange markets," the statement added.

The Bangladesh Bank will also conduct seminars, workshops. etc., explaining to the banks, media and to the public the Implications and benefits of the move to a current account convertibility of the Taka.