Dhaka: Bangladesh Bank (BB) has introduced a new financial arrangement allowing Authorized Dealers (ADs) to enter into foreign currency-Taka swap arrangements with exporters against balances held in their respective 30-day pools and Exporters’ Retention Quota (ERQ) accounts. This initiative is designed to support exporters by addressing their short-term liquidity requirements in Taka while enabling them to maintain their foreign currency reserves.
According to Bangladesh Sangbad Sangstha, the swap is defined as a spot purchase of foreign currency against Taka with a simultaneous forward sale at an agreed rate and maturity. This is executed using the underlying foreign currency sources owned by exporters. The swap’s duration will not exceed the expected utilization period for ERQ balances and is limited to a maximum of 30 days for 30-day pools, with settlements made upon maturity.
The applicable swap points will reflect market and cost-based interest rate or profit differentials between the two currencies involved. Swaps will only be executed against available and unencumbered foreign currency balances owned by exporters. ADs are required to maintain adequate risk management, credit, and liquidity control systems, in addition to internal approval and audit mechanisms.
Exporters must provide written declarations confirming their understanding of the swap’s contractual nature and related rate implications. The swap transaction is not considered a loan or financing facility extended by ADs. Additionally, funds obtained through this swap must be used solely for legitimate working capital purposes related to export operations, with no speculative positions allowed.
All transactions under this arrangement are to be properly documented, adhere to international best practices, and reported to Bangladesh Bank following standard procedures.