BM Report:
The Bangladesh Bank has announced that it will include the Chinese yuan in its Real Time Gross Settlement (RTGS) system starting February 4, 2024.
The RTGS system is an online platform that allows banks to settle payments between each other in real time. Currently, the system only supports five foreign currencies: the US dollar, the British pound, the euro, the Japanese yen, and the Canadian dollar.
The addition of the yuan is expected to boost trade and investment between Bangladesh and China. The two countries have a growing economic relationship, and the yuan is the second most widely used currency in the world.
Under the new system, banks will be required to open a foreign currency account to settle yuan transactions. Payments can be made in any amount, but only between banks that are connected to the RTGS system.
Banks will also be required to follow the Guidelines for Foreign Exchange Transactions (GEFT) when settling yuan transactions. This includes requiring the beneficiary’s account type to be specified and limiting the maximum transaction fee to BDT 100.
The RTGS system is a secure and efficient way for banks to settle payments. It is expected that the inclusion of the yuan will make it even more convenient for banks to do business with each other and with businesses in China.
