Bangladesh Bank has introduced a Foreign Exchange Market (FXM) Module to digitize and automate key operations in the country’s foreign exchange market, including central bank interventions, interbank trading and reporting.

BB Governor Md Mostaqur Rahman inaugurated the new system at the Foreign Currency Management (FCM) department on Tuesday, according to a central bank press release.

The system was developed internally by Bangladesh Bank officials to replace several foreign exchange activities that were previously handled manually.

The FXM module will support the central bank’s foreign exchange market interventions as well as interbank transactions conducted by commercial banks, including spot, forward and swap deals.

It will also automate the collection and processing of customer-level foreign exchange transaction data related to imports, exports and remittances. The information is used by Bangladesh Bank to calculate reference exchange rates, which are published twice a day.

According to Bangladesh Bank, the automated system will allow foreign exchange transactions and related information to be processed in real time. This is expected to improve the accuracy and reliability of reference exchange rates and market data.

The availability of real-time information will enable commercial banks to make faster decisions and improve liquidity and risk management. It will also strengthen Bangladesh Bank’s ability to monitor market developments and respond more effectively to changing conditions.

The central bank expects the new platform to enhance transparency, accountability and operational efficiency in foreign exchange market activities while supporting more effective monetary and market management.

Bangladesh Bank has already circulated operational guidelines among the relevant banks detailing the procedures for using the FXM system.