In a significant step towards liberalizing its currency, Bangladesh's central bank has permitted dealers to impose a premium on non-deliverable forward contracts, marking a first in the country's financial history. The decision, announced on Tuesday, is part of the central bank's wider initiative to lessen its control over the national currency and promote a more liberal financial environment.
On Saturday, September 24, the central bank issued a notice outlining the new regulations. According to these guidelines, the forward premium cannot exceed the six-month moving average rate of treasury bills (SMART) by more than 5 percentage points annually.
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