Bangladesh Bank (BB) on Monday introduced a new foreign exchange-Taka swap facility aimed at providing exporters with short-term working capital without requiring them to liquidate their foreign currency earnings.
The central bank’s Foreign Exchange Policy Department issued a circular authorising commercial banks to offer this facility to exporters.
Under the system, exporters temporarily hand over a specified amount of foreign currency such as US Dollars or Euros to a bank and receive the equivalent in local currency (Taka).
The same amount of foreign currency is returned to the exporter at the end of the agreed period which is valid for a maximum of 30 days.
BB sources explained that the swap rate, or “swap point,” will be determined based on the difference between the interest or profit rates of the two currencies.
Banks must ensure proper risk management, liquidity control, and internal auditing while operating the swap facility, said the central bank.
The circular said the arrangement is strictly a temporary exchange agreement, not a loan or financing.
Exporters must provide written confirmation acknowledging the contract terms, exchange rates, and associated risks.
Taka obtained through the swap can only be used for export-oriented purposes including production costs, raw material procurement, transportation, and other necessary business expenses.
Use of the funds for speculative or non-commercial transactions is prohibited.
BB officials said the initiative is expected to ease liquidity pressures on exporters without increasing demand-side pressure on the foreign exchange market, enabling businesses to maximise the use of their foreign earnings.
All swap transactions must be properly documented and regularly reported to Bangladesh Bank, they said.
