Bangladesh Bank (BB) is introducing a new system for monitoring letters of credit (L/Cs) as well as other international transactions.

The system is centred on an integrated database launched by the central bank to monitor the country's entire foreign exchange operations.

Online database

The database essentially allows the online monitoring of all bank transactions related to exports, imports and remittances.

This should allow the banking regulator instant access to information on all L/Cs - including back-to-back L/Cs - as well as inward and outward remittances, inland bill purchases and export receipts.

Open access

The central bank has also provided passwords to each chief executive of Bangladesh's banks so they will now be able to monitor foreign exchange transactions across all their branches.

The new system, which is free to use for authorised users, is part of BB's drive towards paperless banking across the country.

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