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The Bangladesh Bank has allowed exporters to obtain Taka liquidity by swapping their foreign currency funds with commercial banks.
In a circular issued on Monday, it allowed the authorised dealer (AD) banks to enter into Taka-foreign currency swap arrangements with exporters against balances held in their 30-day pools and Exporters' Retention Quota (ERQ) accounts.
According to the circular, such a swap constitutes a spot purchase of foreign currency against Taka, accompanied by a simultaneous forward reversal at an agreed rate and maturity, using exporters' own foreign currency holdings.
The tenor of the swap shall not exceed the expected utilisation date of ERQ balances and is capped at 30 days for funds in 30-day pools.
Settlements must take place at maturity.
The central bank further clarified that swap points may be set on market-reflective or cost-based interest/profit differentials between the two currencies.
The swap transactions will not be treated as loans or financing facilities extended to customers by AD banks.
The Taka funds obtained under the arrangement need to be used solely for bona fide working capital needs related to export operations, and the facility cannot be used for speculative purposes, according to the circular.
Industry insiders say the initiative will ease short-term liquidity pressure for exporters without requiring the conventional Taka-denominated export finance from banks, while also encouraging market-based liquidity management through foreign exchange derivatives.
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