Bangladesh Allows Banks to Add Premium on Forward FX Deals

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Bangladesh Allows Banks to Add Premium on Forward FX Deals

Bangladesh allowed dealers to add a premium on non-deliverable forward contracts for the first time, as the central bank stepped up efforts to loosen

Bangladesh allowed dealers to add a premium on non-deliverable forward contracts for the first time, as the central bank stepped up efforts to loosen its control on the currency.

The forward premium will not exceed the six-month moving average rate of treasury bills, known as SMART, plus 5 percentage points per year, according to a central bank notice dated Sept. 24.

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