Foreign
Exchange Market
Foreign exchange Market is a place in which foreign exchange transactions take place. In other word, foreign exchange transaction is a market where foreign money were brought and sold. It is a part of money market in financial centre.
Function of foreign exchange market: The basic and primary function of a fore foreig ign n exch exchan ange ge mark market et is to tran transf sfer er purc purcha hasi sing ng powe powerr betw betwee een n countries. The transfer function is performed through T.T, M.T, Draft, Bill of exchange, Letters of credit, etc. the bill of exchange is the most important and effective method of transferring purchasing power between two parties. Another important function of foreign exchange market is to provide credit to the importer debtor. The exporters draw the bill of exchange on importers on their bankers. On acceptance of the bills by the importer or their bankers, the exporter will get the money realized on the maturity of the bills. In case the expo export rter ers s are are anxi anxiou ous s to rece receiv ive e the the paym paymen entt earl earlie ier, r, the the bill bills s can can be discounted from their bankers, or foreign exchange banks or discount houses. The Foreign Exchange market performs the hedging function covering the risks on foreign foreign exchange exchange transaction transactions. s. There are frequent frequent fluctuations in exchange rates. If the rate is favorable, the exporter will gain and vice verse. In order to avoid the risk involved, the foreign exchange market provides hedges or actual claims through forward contracts in exchange against such fluctuations. fluctuations. The agencies of foreign currencies guarantee payment of foreign exchange at a fixed rate. The exchange agencies bear the risks of fluctuation of exchange rates.
Different Foreign Exchange Regimes Immediately after liberation, the Bangladesh currency taka was pegged with pound sterling but was brought at par with the Indian rupee. Within a short time time,, the the valu value e of taka taka expe experi rien ence ced d a rapi rapid d decl declin ine e agai agains nstt fore foreig ign n curr curren enci cies es and and in May May 19 1975 75,, it was was su subs bsta tant ntia iall lly y deva devalu lued ed.. In 19 1976 76,, Bangla Banglades desh h adopted adopted a regime regime of manage managed d float, float, which which contin continued ued up to August 1979, when a currency-weighted basket method of exchange rate
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was introduced. The exchange rate management policy was again replaced in 1983 by the trade-weighted basket method and US the dollar was chosen as intervention currency. By this time a secondary exchange market (SEM) was allowed to grow parallel to the official exchange rate. Up to 1990, multiple exchange rates were allowed under different names of export export benefi benefitt scheme schemes s such such as, Export Export Bonus Bonus Scheme Scheme,, XPL XPL,, XPB XPB,, EFAS, EFAS, IECS, and Home Remittances Scheme. This led to a wide divergence between the official rate and the SEM rate. The situation also gradually gave rise to a number of conflicting regulations, poor risk management, and various types of impl implic icit it or expl explic icit it gove govern rnme ment nt guar guaran ante tees es to the the us user ers s of fore foreig ign n exch exchan ange ge.. This This resu result lted ed in a numb number er of macr macroo-ec econ onom omic ic imba imbala lanc nces es prom prompt ptin ing g the the gove govern rnme ment nt to adjus adjustt the the offi offici cial al rate rate in phas phases es and and to liqui liquidat date e its differen difference ce with with the rate at SEM. SEM. The two rates rates were were finall finally y unified in January 1992. The first step towards currency convertibility was taken on 17 July 1993 and this marked the beginning of a relatively open foreig foreign n exchan exchange ge market market in the countr country. y. Until Until then then the Bangla Banglades desh h Bank Bank used to declare mid-rate along with the buying and selling rates for dollar applicable to authorized dealers. Initially the spread was Tk 0.10, which was gradually widened to Tk 0.30.
Unti Untill late late in 20 2003 03,, Bang Bangla lade desh sh foll follow owed ed an exch exchan ange ge rate rate poli policy cy of occa occasi sion onal allly adj adjus usti ting ng the the rat rate with an eye on maint aintai aini ning ng expor xportt comp compet etit itiv iven enes ess, s, main mainly ly with with refe refere renc nce e to the the tren trend d of Real Real Effe Effect ctiv ive e Exchange Rate Index based on a trade weighted basket of currencies acted as a sort of benchmark for the banks to set their own rates.
From May 31, 2003, the exchange rates for the Bangladesh Bank’s spot purchase and sale transactions of US dollars with authorized dealers were to be decide decided d withou withoutt refere reference nce to any pre-ann pre-announ ounced ced band and the Taka esse essent ntia iall lly y beca became me a floa floati ting ng curr curren ency cy of major ajor trad trade e part partne ners rs.. The The Bangladesh Bank had a preannounce one Taka wide band within which it would, would, at its discretio discretion, n, undertake undertake US Dollar Dollar purchase purchase and sale transactions transactions with banks. The banks were free to set their own rates for their interbank and customer transactions. Those rates generally tended to be outside the announced rate band for transactions between the Bangladesh Bank and authorized dealers.
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Limits of Foreign Exchange Trading The foreign exchange market of the country is confined to the city of Dhaka. The 32 scheduled banks operating as authorized dealers in the inter-bank foreign exchange market are not permitted to run a position beyond certain limi limits ts.. In the the even eventt of sp spec ecul ulat atio ion n on an appr apprec ecia iati tion on of the the valu value, e, an authorized dealer may buy more foreign currencies than it needs, but at the end of the day it must maintain its limit by selling excess currencies either in the inter-bank market or to customers. Authorized dealers maintain clearing accounts with the Bangladesh Bank in dollar, pound sterling, mark and yen to settle their mutual mutual claims. claims. If there any excess excess foreign foreign exchange exchange holdings exis existt afte afterr thes these e tran transa sact ctio ions ns,, it is obli obliga gato tory ry for for them them to sell sell it to the the Bangladesh Bank. In case of shortfall of the limit, authorized dealers have to cover it either through purchase from the market or from the Bangladesh Bank.
Role of Bangladesh Bank At present, the system of exchange rate management in Bangladesh is to monitor the movement of the exchange rate of taka against a basket of curren currencie cies s throug through h a mechan mechanism ism of real effect effective ive exchan exchange ge rate (RFER) (RFER) intended to be kept close to the equilibrium rate. The players in the foreign exch exchang ange e marke markett of Bang Bangla lade desh sh are are the the Bang Bangla lade desh sh Bank Bank,, autho authori rize zed d dealers, and customers. The Bangladesh Bank is empowered by the Foreign Exchange Regulation Act of 1947 to regulate the foreign exchange regime. It, It, howe howeve ver, r, does does not not oper operat ate e dire direct ctly ly and and inst instea ead, d, regu regula larl rly y watc watche hes s activities in the market and intervenes, if necessary, through commercial banks. From time to time it issues guidelines for market participants in the light light of the countr country's y's moneta monetary ry policy policy stance stance,, foreig foreign n exchan exchange ge reserv reserve e posi positi tion on,, bala balanc nce e of paym paymen ents, ts, and and over overal alll macr macroo-ec econ onom omic ic situ situat atio ion. n. Guidelines are issued through a regularly updated Exchange Control Manual published by the Bangladesh Bank.
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According to Bangladesh Bank “banks and authorized dealers are free to set their own rates of foreign exchange against Bangladesh Taka for their interbank and customer transactions. The exchange rate is being determined in the the mark market et on the the basi basis s of marke arkett dema demand nd and and su supp pply ly forc forces es of the the respe respect ctiv ive e curr curren enci cies es.. Howe Howeve ver, r, to avoi avoid d any unusu unusual al volat volatil ilit ity y in the the exchang exchange e rate, rate, BB occasi occasiona onall lly y engage engages s its itself elf to interv intervene ene in the market market through purchase and sale US Dollar as and when it deems necessary to maintain stability in the foreign exchange market. Bangladesh Taka is fully convertible for current international transactions.” However, only authorized dealers are allowed to participate in trading with license from Bangladesh Bank, and license may be revoked due to irregularities or if the Bangladesh Bank regulations are not followed.
The exchange rates of Bangladesh Taka were left on the market forces after the floatation where any intervention in the foreign exchange market by the Bangladesh Bank is not enviable. The exchange rates of Bangladesh Taka against against major major internatio international nal currencies currencies witnessed witnessed somewhat somewhat stability stability since then, which did not warrant any intervention in the foreign exchange market by the Bangladesh Bank. In view of keeping foreign exchange reserve at a comfortable level, however, the Bangladesh Bank had to participate in the market. Data as shown at the table below indicate that the Bangladesh Bank did not sell any foreign currency during the last two fiscal years.
Purchases and Sales of Foreign Exchange by the Bangladesh Bank (Million US$)
Particul ars
2002
2003
2004
2005
2006
2007
Purchas e
507.1
503.9
314.0
459.5
413.0
649.5
Sale
63.9
0.0
0.0
70.1
77.0
0.0
Source: Bangladesh Bank Annual Reports 2002- 2007
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The Bangladesh Bank only purchased US $ 503.9 million and US $ 314.0 million during 2003 and 2004 respectively. Overall trends in both the sales and purchases of foreign currency by the Bangladesh Bank show declining trends during 2002-2004 indicating gradually less necessity for intervention by the Bangladesh Bank.
Because of relatively faster growth in import payments than export receipts, the demand for foreign exchange than that of supply was much stronger during the last half of 2005 generating some depreciating pressure on the Taka-Dollar exchange rate. With a view to mitigating the mismatch between the the su supp pply ly and and dema demand nd for for fore foreig ign n exch exchan ange ge,, the the Bang Bangla lade desh sh Bank Bank intervened by selling a sizeable of amount of foreign currency in the foreign exchange market. The Bangladesh Bank sold USD 459.5 million as against the purchase of USD 70.1 million in 2005. Bangladesh Bank's intervention helped stabilize the exchange rate to Taka 63.70 during fourth quarter of 2005 20 05,, althou although gh pressu pressure re on forex forex market market contin continued ued,, reflec reflectin ting g wideni widening ng current account deficit. Bangladesh Bank also allowed limited overdraft facility on foreign currency clearing account with the Bangladesh Bank to NCBs and some private sector banks banks facing facing tempor temporary ary mismat mismatch ch in liqui liquidit dity y and relaxe relaxed d restri restricti ctions ons on swap swap and and forw forwar ard d oper operati ation ons s in orde orderr to give give banks banks some some flex flexib ibil ilit ity y to manage their liquidity.
Pressure in the foreign exchange market continued due to price hike of oil and petroleum products products and major import import commoditi commodities es coupled coupled with higher growth in lending to the private sector, which led to rapid growth in imports demand in the face of slowdown in export earnings in the first half of 2006. Butt due Bu due to adop adopti tion on of cont contra ract ctio iona nary ry mone moneta tary ry poli policy cy toge togeth ther er with with substantial inflow of foreign exchange from export earnings and remittances, the situations eased later on. To increase the supply of foreign currencies in the market, BB sold USD 413.0 million as against the purchase of USD 77.0 million in 2006. Overall trend in purchases of foreign currency by the BB, were showing declining trends during 2004 to 2006 indicating gradually less necessity for intervention by the Bangladesh Bank. 7 2 e g a P
According Bangladesh bank annual report, in 2007, to absorb excess liquidity from the foreign exchange market, Bangladesh Bank purchased USD 649.50 million million from banks and had no sales. However, However, an HSBC report (Bangladesh (Bangladesh Review Review & Outlook) Outlook) quoting newspapers newspapers mentioned mentioned that Bangladesh Bank sold sold USD USD 22 220. 0.0 0 mill millio ion n near near the the end end of 20 2007 07 to suppo support rt the the mark market et for for commodity import payments.
Authorized Dealers of Foreign Exchange The authorized dealers are the only resident entities in the foreign exchange market to transact and hold foreign exchange both at home and abroad. Bang Bangla lade desh sh Bank Bank issu issues es lice licens nses es of auth author oriz ized ed deal dealer ersh ship ip in fore foreig ign n curre currenc ncie ies s only only to sc sche hedu dule led d bank banks. s. The The amou amount nt of fore foreig ign n exch exchang ange e hold holdin ings gs by the the auth author oriz ized ed deal dealer ers s are are su subj bjec ectt to open open posi positi tion on limi limits ts prescribed by Bangladesh Bank, which itself purchases and sells dollars from and to the dealers on spot basis. The size of each such transaction with Bangla Banglades desh h Bank Bank is requir required ed to be in multip multiples les of $1 $10,0 0,000 00,, subjec subjectt to a minimum of $50,000. In addition to authorized dealers, there are registered moneyc moneychang hangers ers to buy foreig foreign n curren currencie cies s from from touris tourists ts and sell sell them them to outgoing outgoing Bangladeshi Bangladeshi travelers travelers as per entitlem entitlement. ent. Their Their excess excess holdings holdings beyond the permitted balance are required to be retained with authorized dealers. Some service institutions like hotels and shops have also obtained limited limited money money changing changing licenses licenses to accept accept foreign foreign currencies currencies the foreign foreign tourists, but those are to be sold to authorized dealers. Transactions by custom customers ers take take place place mainly mainly to satisf satisfy y custom customer er demand demand for indivi individua duall needs and to facilitate export, import, and remittances.
The The phen phenom omen enal al grow growth th of inte inter-b r-ban ank k tran transa sact ctio ions ns was was due due main mainly ly to relaxation of exchange control regulations and expansion of the activities of the Bangladesh Foreign Exchange Dealers Association (BAFEDA) formed on 12 Augus ugustt 1993. The The asso associ ciat atiion was incor ncorpo pora rate ted d as a non non-pro -profi fitt organization under the Companies Act (Act.XVIII) of 1994 on March 30, 1998. At present, 44 banks operating in Bangladesh are member of the association. 7 2 e g a P
Objectives of BAFEDA Accord According ing to the Consti Constitut tution ion of Bangla Banglades desh h Forei Foreign gn Exchan Exchange ge Dealer Dealers' s' Association, the objectives of the Association are: i. To create and promote inter-bank foreign exchange dealings and develop good good fellow fellowshi ship p that that is indisp indispens ensabl able e in foreig foreign n exchang exchange e deali dealings ngs and relations; ii. To function in the best interest of the members and also to do all such othe otherr thin things gs as may may be nece necess ssar ary y or desi desira rabl ble e in furt furthe hera ranc nce e of the the objectives of the Association; iii. To arrange that the foreign exchange dealers of member banks keep one anot anothe herr info inform rmed ed and and they they rend render er assi assist stan ance ce to one one anoth another er with withou outt prejudice to the interests of their respective institutions; iv. iv. To do all all that that is nece necessa ssary ry in the powe powerr of the the As Assoc socia iati tion on and and the the members, collectively and individually, and also to uphold high standards of ethics by rendering quality service in foreign exchange dealings. For smooth functioning of the inter-bank foreign exchange market, a “Code of Cond Conduc uct” t” for for Bang Bangla lade desh sh Inte Inter-B r-Ban ank k Fore Foreig ign n Exch Exchan ange ge and and Treas Treasur ury y Oper Operat atio ions ns and and also also “B “BAF AFED EDA A Rule Rules” s” were were form formul ulate ated d earl earlie ier, r, with with the the approval of Bangladesh Bank.
Members of BAFEDA The association may have two classes of members Committees-
Primar Primary y Membe Members: rs: This remain ains open to all scheduled bank anks in Bangladesh, who are authorized dealers and actively engaged in dealing in foreign exchange. The members are represented by the Chief Executives. Howe Howeve ver, r, after after givi giving ng a due due noti notice ce,, a memb member er may may with withdr draw aw from from the the Association. Associate Member: This includes those who are authorized in sale and purchase of foreign currencies and also active in financing import and export activities in Bangladesh. Associate membership is subject to approval of the Executive Committee. Associate members have no voting rights.
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Transaction in the Interbank Market Transactions volume in the inter-bank foreign exchange market was USD 56.0 billion in 2001, and USD 98.4 billion in 2002. Forward transactions had a 4.7 fold increase from USD 7.19 billion of 2001 to USD 33.7 billion in 2002. This ballooning of forward transactions volume was not a balanced growth however; forward sales of dealers were covered mostly by spot purchases rather than by matching forward purchases from exporters and other nonbank foreign exchange earners. Soon after, Bangladesh Bank put up a series of restrictions, at the same time paving the way for floating the currency as was done on May 31, 2003.
The interbank interbank foreign foreign exchange exchange transaction transaction volume volume in 2003 was USD 91.08 91.08 bill billio ion n less less than than the the prev previo ious us years years,, main mainly ly beca becaus use e of the the rest restri rict ctio ion n imposed on building up forward sales covered by spot rather than forward purchases. Due to further restrictions imposed on building up forward sales cove covere red d by spot spot rath rather er than than forw forward ard purc purcha hase ses, s, the the inte interb rban ank k fore foreig ign n exchange transaction volume in 2004 stood at USD 56.39 billion, and spot transactions at USD 40.8 billion.
In 2005, all authorized dealer banks were instructed not to undertake any non-real cross currency forward and swap transactions, and consequently the interbank foreign exchange transactions volume in 2005 stood at USD 19.9 billion and volume of forward transactions came down to USD 0.3 billion in 2005
As authorized dealer banks were instructed not to undertake any non-real cross currency forward and swap transactions, volume of inter-bank forward transactions was almost nil in 2006, and the volume of inter-bank foreign exch exchan ange ge tran transa sact ctio ions ns in 20 2006 06 stoo stood d at USD USD 20 20.3 .3 bill billio ion. n. This This tren trend d continued in 2007, and the volume inter-bank foreign exchange transactions stood at USD 19.2 billion 7 2 e g a P
Size of the Market The size of the market may be difficult to measure but estimates can be made based on figures of export, import, remittance, and interbank foreign exchange transactions.
Before deregulation of foreign exchange market the volume of inter-bank transaction was low. The assured access to funds from Bangladesh Bank at known cost as well as the assured buy-sell margins and transaction fees contained in the pre-determined exchange rate provided little inducement for authorized dealers to engage in inter-bank transactions. However, the situation has been changing and the reliance of authorized dealers on the Bangladesh Bank is gradually declining.
The The averag average e monthl monthly y transac transactio tions ns of foreig foreign n exchan exchange ge in the interinter-ban bank k market accounted for $23.46 million in 1991-92 and crossed the $1 billion mark in 1998-99. The average monthly turnover for the six months between July and December 2000 was $1.5 billion.
From the table bellow have some ideas regarding the volume of trade might be gathered: Foreign Exchange Components and Estimation of Market Volume (Billion USD) 7 2 e g a P
Compone nts
2000
2001
2002
2003
2004
2005
2006
2007
Foreign Aid
1.58 .58
1.37 .37
1.44 .44
1.59 .59
1 1.0 .03 3
1.49 .49
1.57 .57
1.63 .63
Expo xport
5.75
6.4 6.47
5.9 5.99
6.5 6.55
7.60
8.6 8.65
10. 10.53
12.18
Remittanc 1.95 es
1.88
2.50
3.06
3.37
3.85
4.80
5.98
9.72
9.93
11.20
12.01
13.99
16.90
19.78
7.7 7.70
8.71
9.84
11. 11.87
13.30
15.51
Total Inflow Import Foreign Debt Servicing
9.28 7.57
8.43
0.55 .55
0.57 .57
0.59 .59
0.61 .61
0 0.5 .59 9
0.66 .66
0.67 .67
0.70 .70
Tot Total al Out Out 8.11 8.11 Flow
9.00 9.00
8.28 8.28
9.32 9.32
10.4 10 .43 3
12.5 12 .53 3
13.9 13 .97 7
16.2 16 .22 2
Total (major) Transacti ons
17.39
18.72
18.21
20.51
22.44
26.52
30.86
36.00
Total Interbank Transacti ons
N/A N/A
56.00 .00
98.40 .40
91.08 .08
5 56 6.39 .39
19.90 .90
20.30 .30
19.20 .20
Forward Transacti ons
N/A
7.19
33.70
* Estimated
24.65 15.60
0.30
Nil
Nil
* Source: Bangladesh Bank
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However, the following table gives the current trading volume (according to HSBC)
Daily Average FCY/BDT Turnover in Spot
USD 15-20 million
Daily Average FCY/FCY turnover in Spot
USD 70-80 million
Daily Average Forward turnover in Interbank
Insignificant
Daily Average SWAP turnover in Interbank
USD 2-3 million
Nature of Trading The The-i -int nter er bank bank fore foreig ign n exch exchan ange ge mark market et of Bangl anglad ades esh h is stil stilll at its its rudimentary stage. The market is an oligopolistic one and is dominated by a few relatively large banks, which have remained only as dealers instead of developing themselves into buyers or sellers. The most widely used practice is spot transaction; this covers 95% of the total transactions. Only forward transactions offer protection against foreign exchange risks. Deals in foreign exch exchang ange e marke markett are are us usual ually ly conf confir irme med d over over tele teleph phon one, e, foll follow owed ed by a written advice. Confirmed deals may be cancelled on payment of necessary costs.
There also exists a ‘kerb’ market, where currency racketeers transact foreign curre currenc ncie ies s thro throug ugh h a chai chain n of midd middle leme men. n. This This mark market et emer emerge ged d in the the restricted regime of foreign exchange transaction but continues to be active. This market operates in the alleys or lanes and by-lanes of Dhaka city around the foreign exchange branches of authorized banks. Dealers of hundi also form form part part of this this marke arket. t. A size sizeab able le amou amount nt of fore foreig ign n curr curren enci cies es is channeled through this market every year.
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Majo Major r Fact Factor ors s that that Affe Affect ct the the Fo Fore reig ign n Ex Exch chan ange ge Market
Some Some of the the majo majorr facto factors rs that that affe affect ct the the fore foreig ign n exch exchan ange ge mark market et in Bangladesh are: i)
Exchange rates
ii)
Remittances
iii)
Foreign Exch xchang ange Reser serve
iv)
Fore Foreig ign n Excha xchang nge e Regula gulati tion ons s
Exchange Rate Bangla Banglades desh h Bank Bank limits limits its market market interv intervent ention ions s to counte counterin ring g dis disord orderl erly y movements and to building a more comfortable reserves position consistent with the macroeconomic program agreed with the International Monetary Fund. A managed floating exchange rate system in force since May 2003 has served the economy well, enabling it to adjust relatively smoothly to the changing external environment, especially in absorbing the oil price shock, supporting export growth, and protecting reserves.
The exchange rates of Taka for inter-bank and customer transactions are set by the dealer banks themselves, based on demand-supply interaction. The Bangladesh Bank is not present in the market on a day-to-day basis and undert undertake akes s purchas purchase e or sale sale transac transactio tions ns with with the deale dealerr banks banks only only as needed to maintain orderly market conditions. The exchange rates are used as reference rates to purchase or sale transactions for Bangladesh Bank with Government or different International Organization. But USD/BDT buying and
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selling selling rates represent represent previous previous day inter-bank inter-bank market's highest and lowest lowest exchange rates.
Forecast of USD-BDT Movement for the Year 2008: Forecast of USD-BDT for Year 2008 Month
Taka per USD Jan-08
Feb-08
68.60 69.00
Mar-08
67.00
Apr-08
69.50
May-08
69.00 Jun-08
Jul-08 Jul-08
68.50 68.00 68.00
Aug-08
67.00
Sep-08
66.50
Oct-08
68.00
Nov-08
68.50
Dec-08
67.75
Source: HSBC
The exchange rate came under increasing pressure during much of 2006, because because of slowing slowing financial financial account inflows and higher higher import import prices prices for oil and some other products. The currency stabilized in the last quarter of the
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fiscal year, as the tighter monetary policy started to have an effect, and the current account strengthened notably. The exchange rate stood at Tk69.7/$1 in June 2006, representing an 8.5% depreciation against the US dollar in 2006 (see figure below). The marked depreciation in the nominal rate offset Bangladesh's higher inflation relative to its trading partners, and the real effective exchange rate of the taka depreciated by 5.3% in 2006, boosting the country's external competitiveness.
Buying and selling rates of other currencies in terms of taka Currency Currency Selling USD 68.58 JPY 0.69
Buying Buying 68.58 0.69
GBP 136.74
136.71
EUR 108.35
108.32
CAD 67.14
67.10
AUD 62.94
62.92
Nominal exchange rate (Source: Bangladesh Bank)
Remit emitta tanc nces es and and Exchange (Hundi)
NonNon-Of Offi fici cial al
Chan Chann nel
Fore Fo reig ign n 7 2 e g a P
Experiencing a huge surplus of labor and economic stagnation immediately after its independence in 1971, Bangladesh has pursued an active policy to locate locate overse overseas as labor labor market markets s for its nation nationals als and has been been amazi amazingl ngly y successful in penetrating the labor markets of the oil-rich Middle Eastern countries as early as the mid-1970s. Soon after penetrating the Middle East mark market et in the the 19 1970 70s, s, Bang Bangla lade desh sh bega began n targ target etin ing g the the comp compara arati tive vely ly developed economies of East and Southeast Asia. Some countries of East and Southeast Asia had experienced labour shortages in the late 1980s and started hiring a large number of foreign workers. Bangladesh established contacts with these countries and began sending thousands of its nationals to these new destinations since the early 1990s. To Bangladeshi migrants, these these new destin destinati ations ons were were econom economica ically lly more more rewardi rewarding ng as they they could could draw higher wages compared to their counterparts in the Middle East.
This possibility of higher earnings induced the migration of better educated and enterprising Bang angladeshis who were mostly unemployed or underemployed in Bangladesh.
As the labour labour markets markets in East and Southeast Asia are limited limited and controlled controlled by strict strict regula regulator tory y measur measures, es, the flow flow of docume documente nted d migran migrants ts to this this regi region on is main mainly ly dema demand nd-d -dri rive ven. n. Howe Howeve ver, r, with with the the grow growth th of migr migran antt networks over time, a growing number of prospective migrants are able to circum circumven ventt the offici official al regula regulatio tion—a n—a phenom phenomeno enon n that that has given given rise rise to undocumented migration in the region. According to some available data, the total cumulative figure for Bangladeshi documented migrants overseas until until 20 2004 04 was approxi approximat mately ely 4 millio million n and for East East and Southe Southeast ast Asi Asia a alone, it was around half a million. However, it is understood that the size of undocumented migrants will be much higher in both regions. In the last decade, around 200,000 Bangladeshis annually migrated overseas for work through the official channel.
Bang Bangla lade desh’ sh’s s atte attemp mptt to earn earn fore foreig ign n curre currenc ncie ies s thro throug ugh h the the expo export rt of surplus labor has shown remarkable success. According to official data of Bangladesh Bank and BMET, Bangladesh received more than US$ 32 billion remittances from its migrant population between 1976 and February 2005. The formal remittance to Bangladesh has increased in congruence with the
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flow of migrant workers overseas. While in 1976 only US$ 24 million entered the country through formal channels, this number rose to around 1.09 billion in 1993, around 2.07 billion in 2001 and, finally, US$ 3.18 billion in 2003. The data data on inform informal al remitt remittanc ances es is sketch sketchy. y. An ILO study study on remitt remittanc ances es in Bangladesh revealed that ten out of 100 remittance receiving families faced proble problems ms with with the hundi, hundi, wherea whereas s 19 people people encoun encounter tered ed proble problems ms with with official transfer methods. The ILO study also found that the minimum time required to transfer the remittances was one hour and the maximum time was 25 days (bank draft). It is thus obvious that a large amount of cash enters the country informally.
To increase the inflow of remittances through formal channels, Bangladesh Bank, as the central bank of the country, plays a crucial role. Bangladesh Bank permits banks to establish drawing arrangements with foreign banks and Exchange houses for facilitating remittance by Bangladeshi nationals living abroad. Persons willing to remit their earnings Through official channels can buy either Taka draft (Bangladeshi currency) or US dollar draft from these foreign banks and Exchange Exchange houses with drawing arrange arrangeme ments nts with with differ different ent banks banks in Bangla Banglades desh. h. Bangla Banglades deshi hi nation nationals als living abroad can send Foreign Exchange directly to their own bank accounts mainta maintaine ined d in Bangla Banglade desh sh or to their their nomina nominated ted person person's/ 's/rel relati ative' ve's s bank bank acco accoun unts ts in Bang Bangla lade desh sh.. Bank Banks s that that are are allo allowe wed d to deal deal with with fore foreig ign n exch exchan ange ge eith either er have have thei theirr own own exch exchan ange ge bran branch che es or link link up with with international banks or money exchange companies in the host countries. Private Banks are not allowed to have branches in cities overseas. However, they have correspondent banks.
Some NCBs and PCBs had opened their operations in East and Southeast Asia in the 1990s. Some Bangladeshi banks that have arrangements with foreign banks and exchange houses in East and Southeast Asia are Sonali Bank, Bank, Janata Janata Bank, Bank, Nation National al Bank, Bank, Agrani Agrani Bank, Bank, Islami Islami Bank and United United Commercial Bank. Transfers of money from these banks usually take a week in the case of receiving banks situated in the capital city Dhaka. However, if the receiving banks are situated in the district cities, the delivery time to banks extends to a few weeks. Migrant workers often blame the malpractices
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and unfriendliness of bank officials in Bangladesh. Likewise in some host countr countries ies,, especi especiall ally y Singapo Singapore re and Malaysi Malaysia, a, it has been been observ observed ed that that there is a lack of customer-friendly attitude among the agents of exchange houses established by Bangladeshi banks.
Besides the facilitation measures for the remittance, strengthening of antihundi hundi surveil surveillan lance ce also also aided aided the growth growth in remitt remittanc ances. es. Vigil Vigilanc ance e was tightened against bank accounts in Bangladesh being used for local transfers of funds to cover hundi transactions diverting away inward remittances of work worker ers s abro abroad ad.. This This su surv rvei eill llan ance ce was was su supp ppor orte ted d stro strong ngly ly with with the the enactment in April 2002 of a new law for prevention of money laundering activities in Bangladesh “The Money Laundering Prevention Act, 2002”.
Also, Bangladesh Bank has been making vigorous efforts for preventing flow of remitt remittanc ances es throug through h unoffi unofficia ciall channe channels. ls. These These includ include e expansi expansion on of activi activitie ties s of drawing drawing arrange arrangemen ments, ts, review review of statem statement ents s receiv received ed from from foreign banks/exchange houses, close monitoring and supervision of banks etc. Besides, the concerned scheduled banks had ensured quick delivery of remittances by reducing lead-time to the beneficiaries in Bangladesh, which brou brough ghtt su subs bsta tant ntia iall deve develo lopm pmen entt in the the deli delive very ry sy syst stem em.. It is to be ment mentio ione ned d that that,, draw drawin ing g arrang arrangem emen ents ts have have been been made made betw betwee een n 35 Bang Bangla lade desh shii bank banks s and and 38 380 0 fore foreig ign n bank banks/ s/ex exch chan ange ge hous house es situ situat ated ed throughout the globe. Furthermore, an annual remittance threshold has been fixe fixed d up amou amount ntin ing g to USD USD 3.00 3.00 mill millio ion n for for each each USA USA base based d exch exchang ange e houses, GBP 2.00 million for UK-based exchange houses and 2.5 million for Canadi Canadian an exchan exchange ge houses houses.. For these these measu measures res,, remitt remittanc ances es record recorded ed a substa substanti ntial al increa increase se by 24 24.8 .8 percen percentt to USD 48 4801 01.9 .9 milli million on during during 20 2006 06,, Remittances as percentage of GDP increased by 1.37 percentage point to 7.74 in 2006 from 6.37 in 2005. Remittances reached an astounding USD 5,979 million in 2007.
Foreign Exchange Reserve Foreign Foreign Exchange Exchange Reserve is the stock of foreign foreign currencie currencies s a country country holds to buff buffer er out out imba imbala lanc nce es bet between ween fore foreiign rec receipt eipts s and and paym payme ents. nts. Bang Bangla lade desh sh Bank Bank,, the the cent central ral bank bank of the the coun countr try, y, hold holds s the the stoc stock k of
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convertible foreign exchange reserve of the country in the form of liquid assets. In the first 2-3 years after liberation, the foreign exchange reserve of the the coun countr try y was was comp compos osed ed main mainly ly of aid/ aid/gr grant ants s and and expo export rt earn earnin ings gs.. Subseq Subsequen uently tly,, Bangla Banglades desh h divers diversifi ified ed export export produc products ts and expande expanded d its export base. It could also geographically diversify the direction of the export trade by exploring new areas. The export earnings gradually emerged as the main source of the country's foreign exchange reserves. In 1974, Bangladesh intr introd oduc uced ed the the wage wage earn earner ers' s' sc sche heme me,, whic which, h, by now, now, has has beco become me a sign signif ific ican antt sourc source e of fore foreig ign n exch exchan ange ge.. Bang Bangla lade desh sh rece receiv ives es fina financ ncia iall assistance from IMF under various arrangements, which also constitutes an important important source of the foreign exchange reserve of the country. Moreover, Moreover, as its member, Bangladesh receives additional SDR allocations from IMF. Historically, the foreign exchange reserves of Bangladesh has been largely inade inadequ quat ate e comp compar ared ed to its its need needs s for for fina financ ncin ing g impo import rts, s, meet meetin ing g debt debt service liabilities, and paying for factor earnings of the foreign nationals. A growi growing ng demand demand for foreig foreign n exchan exchange ge emanat emanated ed from from people people travel traveling ing abroad for education, training and medical service outside the country.
Since Since liber liberati ation, on, Bangla Banglades desh h had been been follow following ing a very very restri restricti ctive ve impor importt policy and rationing scarce foreign exchange. In the process of economic reform reform and libera liberali lizat zation ion,, restri restricti ctive ve polici policies es were were gradual gradually ly replac replaced ed by liberal policies. Generally, the reserve position of a country is determined by factors such as vulnerability in balance of payments, the speed of reserve depletion, opportunity cost of holding reserves, and the international liquidity position. The supply of primary exportables from Bangladesh is inelastic in the short run and the country is dependent on imports for supply of industrial consum consumer er goods, goods, machin machinery ery and indust industria riall raw materi materials als.. The prices prices of impo import rted ed good goods s ofte often n fluc fluctu tuat ate. e. As a resu result lt,, the the bala balanc nce e of paym paymen ents ts situat sit uation ion remain remains s under under pressur pressure. e. The balanc balance e is influe influence nced d by intern internal al shoc sh ocks ks gene genera rati ting ng from from dama damage ges s cause caused d by floo floods ds or drou drough ghts ts as well well external shocks originating from declines in prices of exportables or rise in prices of imported goods.
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Bangladesh does not have easy access to international liquidity, particularly to commercial credit, and the availability of funds from official sources is subject to various conditionalities. This is why Bangladesh has to maintain a reasonable level of foreign exchange reserve equivalent to an amount that cove covers rs paym paymen entt for for at leas leastt about about 3 mont months hs'' impo import rts. s. The The tren trend d of the the reserve shows no uniform growth although there had been a rise in export earn earnin ings gs as well well as worke workers' rs' remi remitt ttan ance ces. s. The The rese reserv rves es of $1 $122 22 mill millio ion n record recorded ed during during 19 1981 81-82 -82 were were equiva equivalen lentt to less less than than a month' month's s import import payment. This occurred due to mainly a substantial decline in the prices of the the coun countr try's y's expo export rtabl ables es,, su suspe spens nsio ion n of IMF' IMF's s Exten Extende ded d Fund Fund Facil Facilit ity y Programme, and lower aid disbursement. Amidst fluctuations, the reserves reached a peak level of $3.37 billion in April 1995 and then declined to $1.3 billion or equivalent to about 2 months' of import payment in December 2001.
Foreign exchange controls Foreign exchange controls are various forms of controls imposed by a government on the purchase/sale of foreign currencies by residents or on the purchase/sale of local currency by nonresidents. Common foreign exchange controls include: • • • • •
Banning the use of foreign currency within the country Banning locals from possessing foreign currency Restricting currency exchange to government-approved exchangers Fixed exchange rates Restrictions on the amount of currency that may be imported or exported
Countries with foreign exchange controls are also k nown as "Article 14 countries," after the provision in the International Monetary Fund agreement allowing exchange controls for transitional economies. Such controls used to be common in most countries, particularly poorer ones, until the 1990s when free trade and globalization started a trend towards economic liberalization. Today, countries which still impose exchange con trols are the exception rather than the rule.
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Foreign Exchange Regulations Of major note is, of course, that of May 31, 2003 to have a managed float of BDT, whereby Bangladesh Bank will have a minimum interaction with the market except as in stabilizing role. Also of not are those of 2005 and 2006 restricting swaps and forwards.
Some major changes in regulations are given below.
Year 2002 Bang Bangla lade desh sh cont contin inue ued d in 20 2002 02 with with the the poli policy cy of leav leavin ing g the the bank banks s authorized to deal in foreign exchange, free to set their spot and forward exchange rates for customer transactions and interbank transactions, with the Bangladesh Bank announcing a one-Taka wide band within which it will buy and sell US dollars from and to the Authorized Dealer banks on a spot basis. This band was revised once in 2002, on 6 January 2002, to Taka 57.40--58.40 per US dollar from the previous Taka 56.50 to 57.50, involving depreciation by 1.6 percent.
Year 2003 Effective from 31st May 2003, Bangladesh stepped into fully market based exchange rate for the Taka, with BB notifying that it no longer had a preannounced rate band for transactions with banks and that it would intervene in the market only as and when needed to ensure orderly market conditions. The BB took elaborate preparation prior to this changeover to equip itself with with the the nece necess ssary ary inst instru rume ment nts s to main maintai tain n the the stabi stabili lity ty of the the mark market et exchange rate and interest rates. Monitoring of key market variables and foreca forecasti sting ng of liquid liquidity ity were were streng strengthe thened ned;; monito monitorin ring g of open open exchan exchange ge positions of the banks and of the capital controls were paid special attention. Repo and reverse repo with banks by the BB were introduced to enable a firm grip on market liquidity. 7 2 e g a P
The major changes in foreign exchange regulations in 2003 were:
a) With a view to ensuring balanced buildup of forward purchase and sale commit commitme ments, nts, author authoriz ized ed dealer dealers s were were instru instructe cted d to cover cover their their forwar forward d sales of foreign exchange with forward rather than spot purchases.
b) The foreign exchange retention quota for exporters was enhanced from 40 percent to 50 percent for merchandise exports and software/IT exports. The retention quota for exports with high import content was increased from 7.5 to 10 percent.
c) Exem Exempt ptio ion n from from decl declar arat atio ion n to the the cust custom oms s auth author orit itie ies s of fore foreig ign n exchange brought into Bangladesh by an incoming passenger was lowered to USD 3,000 from USD 5,000.
Year 2004 The major changes in foreign exchange regulations in 2004 were as under:
a) In order to avoid risk/gain associated with transactions other than real transactions, the authorized dealers instructed to establish contract of new cros cross s curr curren ency cy forw forward ard and and swap swap tran transac sacti tion ons s only only agai agains nstt custo custome merr requirements without renewal of earlier non-real Contracts of forward and swap transactions at their maturity.
b) To boost up the garments industries, cash incentives payment systems on fob export value of local garments in lieu of bonded warehouse or duty draw back facilities have been revised.
c) Validity period for export of Crust Leather has been extended up to 30 June 2004.
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d) To incr increa ease se the the expo export rt of agri agricu cult ltur ural al good goods s and and to enco encour urag age e the the exporter of such goods, cash incentive has been increased from 15 percent to 25 percent in case of export of fresh vegetables and agro-based products. It has also been extended from 20 percent to 25 percent in case of fruits export. e) A facility of 5 percent cash incentive has been declared in 2004 against the export of jute goods produced by government and non- government jute mills.
f) With a view to diversifying and expanding export of agricultural products 10% cash incentive introduced for export of tobacco and 15% for export of potato.
g) The ceiling of foreign currency to be brought into Bangladesh without declaration to the customs authority was refixed at USD 5,000 from USD 3,000.
h) For convenience of the incoming and outgoing tourists/travelers and to eliminate the illegal activities in foreign exchange, Bangladesh Bank issued 636 money changers (MCs) licenses till September 26, 1999. Subsequently, 376 licenses were cancelled upon detection of irregularities committed by the MCs leaving 260 in operation. On-site and Offsite supervision on the acti activi viti ties es of mone money y chang changer ers s has has been been furt furthe herr stre streng ngth then ened ed to ensur ensure e disciplined operations in this area.
Year 2005 The major changes in foreign exchange regulations in 2005 were as under:
a) The compulsion of covering forward sales by forward purchases with the same amount
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were were relaxe relaxed. d. Under Under the new new arrange arrangemen mentt Author Authorize ized d Deale Dealers rs (AD) (AD) were were requ requir ired ed to cove coverr at least least 50 perc percen entt of thei theirr forw forward ard sales sales by forw forwar ard d purcha purchases ses.. The remain remaining ing portio portion n may be covere covered d by interinter-ban bank k forwar forward d purchase and spot purchase of export bills. Besides, forward sales associated with with swap swap tran transa sact ctio ions ns were were not not requ requir ired ed to be cove covere red d by forw forwar ard d purchases. However, outstanding swap transactions would have to be limited up to the open position limit designated for the transacting AD. Banks were advised to undertake swap transactions in line with counter party limit in acco accord rdanc ance e with with core core risk risk mana manage geme ment nt guid guidel elin ines es issu issued ed by Bank Bankin ing g Regulation and Policy Department of Bangladesh Bank on October 7, 2003.
b) ADs were instructed to prepare and submit currency-wise daily foreign exchange position as per revised format of exchange position statement.
c) Cash incentives for export of agriculture and agricultural products (fresh vegetables/fruits/ agro-processing produces) would be 30 percent instead of 25 percent effective from July 1, 2004.
d) Non-packer exporters would get cash incentives at 10 percent in case of export of frozen shrimp and other fish for retail packing.
e) Cash Cash incen ncenti tive ves s or su subs bsiidy for for expo xport of jute ute and jute ute goo goods by Government and Private sector jute mills at 7.5 percent effective from July 1, 2004 to June 30, 2005.
f) To prevent the irregularities regarding non-entering of imported goods and non-tracing of the importers against imports and import payments, all banks were were advi advise sed d to make make them themse selv lves es conf confir irme med d about about the the authe authent ntic icit ity y of importers, importers present and permanent addresses, their business, their good will, their previous transactions, eligibility etc. before opening of letter of cred credit it.. Howe Howeve verr bank banks s have have also also been been advi advise sed d to make make su sure re abou aboutt entering of imported goods against import payments.
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g) Restriction of advance payment against imports without the permission of Bangladesh Bank were withdrawn subject to availability of bank guarantee issued by internationally recognized and renowned foreign banks on behalf of the foreign beneficiaries/suppliers.
h) To encourage more foreign investment in Bangladesh and to create scope for local commercial commercial banks to profitably profitably invest invest their funds, local banks were given authorizatio authorization n to provide working capital loan facilities facilities to B and C type industries in EPZs.
i) To ensure ensure about enteri entering ng of impor imported ted goods goods against against impor importt paymen payments, ts, comm commer erci cial al banks banks were were advis advised ed not not to open open new new LCs LCs on behal behalff of the the importers against outstanding/nonsubmitted bill of entries.
Year 2006 The major changes in foreign exchange regulations in FY06 were as under:
a) In order to attract more investment "The US Dollar Premium Bond Rules 2002” and “The US Dollar Investment Bond Rules 2002” have been revised with effect from 3 July 2005. According to the revised US Dollar Premium Bond Rules and Investment Bond Rules, non-resident account holder means an individual of Bangladesh or foreign national residing abroad and holding a non-resident foreign currency account in a bank branch in Bangladesh with Authorized Dealership in foreign exchange.
b) It has been decided that prior Bangladesh Bank approval will, however, not be required for Taka advances by way of purchase of cheques in freely conve onvert rtiible ble curr curren enc cies ies draw drawn n by fore foreiign embass bassiies/i s/inter nterna nati tion onal al organi organizat zation ions/fo s/forei reign gn nation nationals als employ employed ed therei therein n on their their bank bank accoun accounts ts abroad, provided that
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(i) The Author Authorize ized d Dealer Dealer is fully fully satisf satisfied ied about about collec collectib tibili ility ty of cheque cheque proceeds in foreign currency within four weeks of purchase, (ii) (ii) The expect expected ed collec collectio tion n period period is fully fully factore factored d in while while decidi deciding ng the purchase price in Taka, and (iii) (iii) The purchase purchases s are with recourse recourse to drawer drawers s of the cheque cheques s for any difficulty in collection.
c) It has has been been clari clarifi fied ed that that balanc balance e in the the Nonr Nonres esid iden entt Inve Invest stor ors s Taka Taka Account (NITA) held for investment in Bangladeshi shares and securities may be transferred to the Foreign Currency Account (FCA) of the same person with the respective AD without prior approval of Bangladesh Bank. Similarly, balance in the FCA may also be transferred to NITA without prior approval of Bang Bangla lade desh sh Bank Bank.. Howe Howeve ver, r, in both both the the case cases s a writ writte ten n requ reques estt of the the account holder will be required.
d) To attract investment in agro-based industry in Ishwardi EPZ it has been decided that subsidy facility would be given for the export of liquid glucose produced in this EPZ and the rate of subsidy will be 20 percent of net repat repatri riat ated ed fob fob valu value. e. This This faci facili lity ty will will be appl applic icabl able e for for liqu liquid id gluc glucos ose e shipped during July 1, 2005 to June 30, 2006.
e) A decision has been taken by the government of Bangladesh that subsidy facility will be given against export of light engineering products (Carbon Rod for battery, UM-1/R-20/D size battery, UM-3/R-06/AA size battery and locally manufa manufactu ctured red glassw glassware, are, manufac manufactur turing ing machin machinery ery,, moulds moulds and parts) parts) produced within the country. This facility will be applicable for the export products where shipment will be made during 1 July 2005 to 30 June 2006. If these products have value addition of more than 50 percent, then subsidy will be given at the rate of 10 percent of repatriated of net export value under prescribed conditions. In this connection, some guidelines have been issued to the ADs for compliance.
f) Authorized Dealers are instructed that besides bills of lading and Air Way Bills issued by the concerned carriers, negotiation of export bills may also
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take place against Forwarders' Cargo Receipts (FCRs) and House Air Way Bills (HAWBs) issued by freight forwarders provided that i) The export letter of credit and the export sale contract specifically provide for negotiation of export bill against FCR/HAWB (as the case may be ) issued by a freight forwarder, and ii) The freight forwarder issuing the FCR/HAWB is operating in Bangladesh with authorization from the Bangladesh Bank under Section 18A of the FER Act 1947.
g) Under Export Development Fund (EDF) preshipment credit facility in US Dollar was initially introduced for import of raw materials, accessories, spare parts and packing materials against export letter of credits on sight basis. Now it has also been extended for import of the same items on sight basis agains againstt export export contra contract, ct, provid provided ed that that if any export export procee proceeds ds become becomes s overdue for not being repatriated within four months after the shipment, the concer concerned ned export exporter er and/or and/or busine business ss entity entity is not allowe allowed d to avail avail furthe furtherr facility facility under Export Development Development Fund. A single single borrower borrower exposure exposure limit is fixed up to a maximum of USD 1.00 million.
Year 2007 The major changes in foreign exchange regulations in 2007 were as under: a) Export subsidy for export of Halal meat will be given at 20 percent during 2007.
b) Cash incentives for export of selected items during 2007 is as follows; 5 percent for export oriented local textile sector, 10 percent for frozen shrimp and and fish fishes es,, 15 perc percen entt for for leat leathe herr prod produc ucts ts,, 15 perc percen entt and and 20 perc percen entt (depend on using local material) for products made by hoogla, straw, coir of sugar cane, 10 percent for tobacco, 10 percent for potato, 15 percent for bicycle and crust bone, 7.5 percent for jute products, 15 percent for hatching eggs ggs and and dayo dayolld chic hicken ken of poul poultr try y indu indust stri ries es,, 10 perc percen entt for for light ight engineering products and 20 percent for agro and agro processing products.
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c) To attract investment in agro-based industry in Ishwardi EPZ it has been decided that subsidy facility would be given for the export of liquid glucose produced in this EPZ and the rate of subsidy will be 20 percent of net repatriated fob value. This facility will be applicable for liquid glucose shipped during 1 July 2005 to 30 June 2008.
d) On Au Augu gust st 20 2006 06,, it was was deci decide ded d that that term term loan loans s in Taka Taka for for capa capaci city ty expansion/BMRE of foreign owned/controlled industrial firms may henceforth be extended/renewed by banks without prior approval of Bangladesh Bank provided that: 1) the term loan in Taka does not exceed, as percentage of total term borrowing, borrowing, the percentage percentage of equity equity of the firm/compa firm/company ny held by Bangla Banglades deshi hi nationa nationals ls and firms/ firms/ compan companies ies not owned owned or contro controlle lled d by foreigners, and 2) total debt of the firm/company does not exceed the 50:50 debt equity ratio. Besides, if requested, Bangladesh Bank may give consent to term term borrow borrowing ing propos proposals als not confir confirmin ming g with with the sti stipul pulati ations ons stated stated above.
e) For implementation of Uniform Customs and Practices for Documentary Cred Credit its s (UCP (UCPDC DC-6 -600 00), ), 20 2007 07 Revi Revisi sion on,, the the Au Auth thor oriz ized ed Deal Dealer ers s (A (ADs Ds)) are are advised to explicitly mention that UCPDC-600 shall apply for all Letters of Credit (LCs) to be opened from 1 July 2007. Similarly, in case of exports from Bangladesh against LCs are in conformity with the rule of UCPDC- 600. If otherwise, ADs shall get the LCs amended accordingly.
References 1.
2.
Mult Multin inat atio ional nal Bus Busin ines ess s Finan Finance ce by by David David K. K. Ei Eite tema man, n, Art Arthu hurr I. Sti Stine nehi hill ll,, Michael H. Moffet Bang Bangllade adesh Revi eview & Out Outlo look ok - 20 2007, H HSB SBC C
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3.
Bang Bangla lade desh sh Ban Bank, k, A Ann nnua uall Repo Report rts s 2002 2002,, 2003 2003,, 2004 2004,, 2005 2005,, 2006 2006,, 2007 2007
4.
Week Weekly ly Curr Curren ency cy roun roundu dup, p, Stan Standa dard rd Char Charte tere red d Ban Bank k
5.
Bang Bangla lade desh sh Bank Bank Quar Quarte terl rly y Rep Repor ortt Oct Oct-D -Dec ec,, 200 2007 7
6.
The The Soci Social al Org Organi aniza zati tion on of Rem Remit itta tanc nces es:: Chann Channel elli ling ng Rem Remit itta tanc nces es fro from m East and Southeast Asia to Bangladesh by Md Mizanur Rahman and Brenda S.A. Yeoh
7.
http://ww /www.bang anglade adesh sh--bank ank.org
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http://www.bafeda.com/
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http://ww /www.cpd-b d-bang anglade adesh sh.o .orrg
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