The central bank has decided to extend authorised dealer (AD) licences to the central trade processing centre (CTPC) of banks for ensuring proper reporting, monitoring and supervision on foreign trade, officials said.
The Bangladesh Bank (BB)'s latest move came against the backdrop of conducting foreign exchange transactions through establishing CTPC by some AD banks without taking licences from the Foreign Exchange Policy Department (FEPD) of the central bank.
"We've found that some AD banks have conducted forex transactions through setting up CTPCs without receiving licences from the FEPD of the central bank," a BB senior official told the FE on Wednesday.
He also said the BB has taken the decision aiming to facilitate foreign trade covering both export and import for ensuing uniform reporting system.
"Funding in the foreign trade will be more transparent because the CTPCs are empowered to recommend financing proposals to the top management of the banks concerned based on the actual transactions of the parties," the central banker explained.
It will also help ease the foreign trade process by reducing the time frame, he said.
Most of the banks are now running CTPCs to help process export and import businesses across the country.
Talking to the FE, a senior executive at a leading private commercial bank said the banks normally conduct forex transactions at the CPTCs under AD licence of their headquarters.
