Ten major dealer banks in Bangladesh have decided to co-operate to ensure that they can meet letter of credit (L/C) payments as the country faces a shortage of US dollars.

The decision was taken earlier this month in an emergency meeting held at the Sonali Bank's head office.

Co-operation

The ten banks essentially agreed that they would first endeavour to meet each other's demand for US dollars and resolve currency problems voluntarily.

If however the banks should fail in such an endeavour, they would then approach Bangladesh Bank, asking it as the central bank to take steps to maintain stability in the foreign exchange market.

Participants

Several commercial banks have faced problems making L/C payments due to US dollar shortages on the inter-bank foreign exchange market.

The participating banks in this co-operative arrangement are IFIC Bank, Janata Bank, Sonali Bank, National Credit and Commerce Bank, Uttara Bank, Agrani Bank, Pubali Bank, Islami Bank, Brac Bank and Krishi Bank.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.