Commercial banks will have to submit their daily net open position (NOP) report to the central bank before starting of business hour of the next working day from July 1, 2016.
The decision was taken at a meeting of Bangladesh Bank (BB)-Authorised Dealers' Forum at the central bank headquarters on Wednesday with BB executive director Ahmed Jamal in the chair.
"We need the NOP report by 9.00 am of each working day for taking necessary measures to help keep the inter-bank foreign exchange (forex) market stable," a BB senior official told the FE while explaining the main objective of the initiative.
Currently, the banks are allowed to submit their daily NOP report to the central bank by 11.00 am of the next working day.
The BB official also said all banks have been advised to complete all preparations in this connection through updating their automation process by June 30.
The central bank has earlier raised the banks' NOP limit for holding foreign exchange in order to keep the forex market stable. BB has increased the NOP limit of all 56 scheduled banks by more than 11 per cent to US$1.51 billion from $1.36 billion.
The latest NOP has been determined on the basis of 15 per cent of the banks' total regulatory capital as on March 31, 2015, according to the BB officials. The banks are now empowered to retain more foreign exchange that helps minimise sale pressure of the US dollar in the forex market, another BB official explained.
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Banks to submit NOP reports before next day from July
Siddique Islam | Published: February 11, 2016 00:00:00 | Updated: February 01, 2018 00:00:00
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