Bangladesh bank: Bangladesh Bank (BB) has launched a Foreign Exchange Market (FXM) Module to automate foreign exchange intervention, interbank transactions, and reporting-related activities, aiming to enhance efficiency, transparency, and reliability in the country's foreign exchange market.
According to Bangladesh Sangbad Sangstha, BB Governor Md Mostaqur Rahman formally inaugurated the FXM system at the central bank's Foreign Currency Management (FCM) department on Tuesday. The event saw the presence of Deputy Governor Dr. Md Kabir Ahmed and Director of Foreign Reserve and Treasury Management Department-1 A.K.M. Ramizul Islam, among other officials.
The FXM module, developed by Bangladesh Bank's officials, is set to replace manual processes with automation. Bangladesh Bank regularly conducts foreign exchange interventions to maintain stability in the domestic foreign exchange market. Banks engage in interbank foreign exchange transactions, including spot, forward, and swap deals, and collect data on customer-level transactions related to imports, exports, and remittances to prepare reference exchange rates published twice daily on the central bank's website.
According to the central bank, automation through the FXM module will enable real-time foreign exchange transactions and facilitate the preparation of accurate reference rates. The automation is expected to improve the accuracy, transparency, and reliability of information, enhancing commercial banks' capacity to make timely decisions and improve operational efficiency, thereby facilitating liquidity and risk management.
The real-time availability of information will also bolster Bangladesh Bank's market surveillance and assist in making timely and realistic decisions based on updated market data. Bangladesh Bank has issued a circular to the concerned banks, along with Operational Guidelines detailing the use and procedures of the FXM system. The central bank anticipates that this automation will reinforce market management and support more effective policy decisions.