Central bank starts instant transactions of foreign currencies through RTGS

Bangladesh Bank has started instant foreign currency transactions, from bank to bank, through online-based real-time gross settlement (RTGS).

Banks are primarily clearing and settling in US dollars, pounds, euros, Canadian dollars, and Japanese yen.

Bangladesh Bank Governor Abdur Rouf Talukder officially inaugurated the RTGS programme at the headquarters of the central bank in Motijheel on Sunday. Deputy governors Ahmed Jamal and Kazi Sayedur Rahman, President of FBCCI Md. Jasim Uddin, MCCI President Saiful Islam, Chairman of Association of Bankers, Bangladesh Selim RF Hossain, and senior officials of the central bank, among others, were present at the event.

Earlier, five currencies - US dollar, pound, euro, Canadian dollar, and Japanese yen - were settled in the traditional transaction system.

As per the method method, banks use paper documents, and the bank officials settle the transaction. It was time-consuming and costly, said Md Serajul Islam, executive director and spokesperson of Bangladesh Bank.

From Sunday, banks will be able to settle transactions instantly without any hassle through the RTGS system, he said.

According to a report by the UNB agency, the Chinese currency yuan can be traded against five foreign currencies.

Bangladesh Bank issued a notification on August 28 to start instant foreign currency transactions through RTGS.