BAFEDA to seek info about inter-bank money market daily

FE Team | Published: August 19, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
The Bangladesh Foreign Exchange Dealers' Association (BAFEDA) will seek information about inter-bank money market on daily basis from the central bank.
The BAFEDA will send a letter to the central bank requesting it to provide the information on its website.
The technical committee of the foreign exchange dealers' apex body took the decision on the matter at a meeting held in its office in Dhaka Tuesday with its Chairman Bashar M Tareq in the chair.
"We have taken such a decision to know the actual position of liquidity in the inter-bank money market," a member of the committee told the FE Saturday.
He also said the committee will submit a report in this connection to the executive committee of the BAFEDA for its consideration.
Currently, the Bangladesh Bank (BB) is putting the buying/selling rates of some selective foreign currencies on a daily basis on its website.
"We need the information about the overall money market so that we can adopt strategy for market operations and participate in the call money market," another member of the committee said.
The committee also decided to hold a training programme on foreign exchange transactions for the treasury officials by the first week of September to improve their efficiency.
"We will organise such training programme to help the treasury officials acquire in-depth knowledge about the overall treasury management," the committee member added.
Besides, the BAFEDA is likely to issue a letter to its member bank shortly asking them to advise concerned department to quote foreign currency exchange rates for their overseas exchange houses for ensuring discipline in the market.
Sources, however, said some departments of banks not concerned with the treasury function are quoting exchange rates to their overseas exchange houses. But any bank department, other than that of the treasury, is neither equipped nor empowered to quote such rates.
This practice has been causing anomaly in rates among banks as well as in the inter-bank foreign exchange market, the sources added.