Foreign Exchange Management of Jamuna Bank Ltd

 Foreign Exchange Department of JBL:

International trade shapes our everyday lives and the world we live in. Nearly every time we make a purchase we are participating in the global economy. International trade is the system by which countries exchange goods and services. Countries trade with each other to obtain things that are better quality, less expensive or simply different from what is produced at home.

To buy foreign goods or services, or to invest in other countries, companies and individuals may need to first buy the currency of the country with which they are doing business. Generally, exporters prefer to be paid in their country’s currency or in U.S. dollars, which are accepted all to the world.

The procedures used to exchange currency in international trade are called foreign exchange system, banks plays vital roles in this procedures world widely. The Bangladeshi banks provide foreign exchange services under, Foreign Exchange Act, 1947 is for dealing in foreign exchange business, and Import and Export Control Act, and 1950 is for Documentary Credits. JBL has also become a member of SWIFT (Society For Worldwide Inter Bank Financial Telecommunication) in 2002, which provides a fast, secured & accurate communication network for financial transactions such as letter of credit, fund transfer etc. As an authorized dealer under regulations of BB, JBL provides the followings three type services under their foreign exchange department.

  Import Services

  Export Services

  Remittance Services

 Foreign Currency Accounts offered by JBL:

Following the liberalization of exchange controls Bangladesh Bank has authorized the banks to maintain different types of foreign currency accounts and convertible Taka accounts. The following are the regulations laid down by Bangladesh in respect of these accounts.

 Who can open the accounts?

Branches of Jamuna Bank Limited may open Foreign Currency Accounts in the names of:

  1. A.    Bangladesh nationals residing abroad
  2. B.     Foreign nationals residing abroad or Bangladesh and foreign firms operating in    Bangladesh or abroad,
  3. C.    Foreign missions and their expatriate employees.

Resident Foreign Currency Deposit (RFCD):

This is a foreign currency denominated account. Those who domicile in Bangladesh but have to remit money to abroad because of various reasons.

Non Resident Foreign Currency Deposit (NFCD):

This is a foreign currency denominated account. Those who doesn’t domicile in Bangladesh but have to remit money to Bangladesh because of various reasons.

Requirements for opening RFCD Account:

  • Two copies of recent passport size photograph
  • Photocopy of passport
  • Photocopy of work permit
  • Salary certificate or employers certificate

For the Officers of Different Embassy they need not to submit all these documents but the Employers certificate is must.

 Requirements for opening NFCD Account:

  • Photocopy of passport
  • Citizenship certificate if available
  • Certificate or approval from our authority for exporting manpower
  • A nominee or authorized person will be selected by the account holder for transactions.
  • Under this account the nominee will receive local currency TK against any Foreign Currency.

Import Section of JBL:

As an authorized dealer the major import items financed by Jamuna Bank Limited, are capital machinery, Hot Roll Steel, electronic equipment, rice, wheat, seeds, polyolefin, cement clinkers, dyes, chemicals, raw cotton, garments accessories, fabrics, cotton etc. To import, a person should be competent to be an ‘importer’. According to Import and Export (Control) Act, 1950, the officer of Chief Controller of Import and Export provides the registration (IRC) to the importer. After obtaining this, the person has to secure a letter of credit authorization (LCA) from Bangladesh Bank. And then a person becomes a qualified importer. He requests or instructs the opening bank to open an L/C.

Import procedures:

1.      Registration with CCI & E

  1. For engaging in international trade, every trader must be first registered with the Chief Controller or Import and Export.
  2. By paying specified registration fees and submitting necessary papers to the CCI & E. the trader will get IRC (Import Registration Certificate). After obtaining IRC, the person is eligible to import.

2.Purchase Contract between importers and exporter:

  1. Now the importer has to contact with the seller outside the country to obtain the Performa invoice/indent, which describes goods.
  2. Indent is got through indenters a local agent of the sellers.
  3. After the importer accept the preformed invoice, he makes a purchase contract with the exporter declaring the terms and conditions of the import.
  4. Import procedure differs with different means of payment. In most cases import payment is made by the documentary letter of credit (L/C) in our country.

3.      Collection of LCA form:

Then the importer collects and Letter of Credit Authorization (LCA) from JBL authorized Branches.

4.      Opening a Letter of Credit (L/C)

Bank provides guarantee to importer and exporter through Letter of Credit. Thus the contract between importer and exporter is given a legal shape by the banker by its ‘Letter of Credit’. The process of opening L/C regarding to import through JBL, nominated branches are as following:

A. Interview of probable L/C opener:

At first in case of import L/C opening opener must give an oral interview to the responsible officers of JBL. If the officer is satisfied with opener’s motive of import, type of import goods, quality of imported goods and marketability of goods than they will give approval to opener to further steps.

B. Application for L/C limit:

Before opening L/C, importer applies for L/C limit. To have an import L/C limit, an importer submits an application to the Department of JBL furnishing the following information,-

  1.                                        I.      Nature of business.
  2.                                      II.      Required amount of limit.
  3.                                    III.      Payment terms and conditions.
  4.                                   IV.      Goods to be imported.
  5.                                     V.      Offered security.
  6.                                   VI.      Repayment schedule.
  7.                                 VII.      Full particulars of bank account maintained with JBL Authorized Branches.

C. The L/C Application:

After getting the importer applies to the bank to open a letter of credit on behalf of him with required papers. Documentary Credit Application Form:

  1.                      I.      Tax Identification Number Certificate.
  2.                    II.      VAT Registration Certificate.
  3.                  III.      Membership Certificate of recognized Trade Association as per IPO.
  4.                 IV.      Performa Invoice: It states description of the goods including quantity, unit price etc.
  5.                   V.      L/C Form: JBL provides a printed form for opening of L/C (JF-fx 13) to the importer. This form is known as Credit Application form. A special adhesive stamp is affixed on the form. While opening, the stamp is cancelled. Usually the importer expresses his desire to open the L/C quoting the amount of margin in percentage.
  6.                 VI.      L/C authorization form (LCAF) duly signed by the importer.
  7.               VII.      The insurance cover note: The name of issuing company and the insurance number are to be mentioned on it.
  8.             VIII.      IMP form duly signed by the importer.
  9.                 IX.      Forwarding for Pre-Shipment Inspection (PSI): Importer sends forwarding letter to exporter for Pre-Shipment Inspection. But all types of goods do not require PSI.

5. Time limit for opening L/C:

L/C (s) shall be open within 180 days from the date of issuance of LCAF or from the date of registration of LCAF with Bangladesh Bank.

6. Terms of L/C:

Full description of the goods along with quantity and unit price to be incorporated in the L/C and shall take all precautions to quote the correct H.S. Codes of the goods. Prices to be quoted on CER or FOB basis according to the P/Invoice or Indent. No import shall be made on CIF basis without prior approval from the Ministry of Commerce.

All L/Cs should provide for payment to be made against full sets of on board (shipped) transport documents drawn and/or endorsed to cover by the credit to a destination in Bangladesh.

All L/Cs must specify submission of signed invoices, certificates of origin & pre-shipment Inspection Certificate. L/Cs shall also incorporate any other documents, which are mandatory specified for those commodities in the IPO/Public Notices/Bangladesh Bank Circulars.

It is not permissible to open import L/Cs in favor of beneficiaries or to use shipping carriers of the countries from which import into Bangladesh are banned by the competent authority.

7. Shipment Validity & Expiry:

All L/Cs must specify shipment validity as per terms of the P/Invoice or indent or L/C application. However, shipment validity under any circumstances shall not exceed 9 (nine) months from the date of issuance of LCAF or registration LCAF with Bangladesh Bank excepting capital machinery and spare parts shipments of which shall be made within 17 (seventeen) months. All L/Cs must stipulate an expiry date and a place for presentation of documents for payment/acceptance.

8. Transmission of L/C to Beneficiary through Advising Bank:

In this step the transmission of L/C is done through tested telex or fax to advise the L/C by JBL to the advising bank. The advising bank verifies the authenticity of the L/C. JBL has corresponding relationship or arrangement throughout the world by which the L/C is advised. Actually the advising bank does not take and liability if otherwise not requested.

9. Presentation of the Documents:  

  1. a.      The seller being satisfied with the terms and the conditions of the credit makes shipment o the goods as per L/C terms.
  2. b.      After making the shipment of the goods in favor of the importer the exporter submits the documents to the negotiating bank.
  3. c.       After receiving all the documents, the negotiating bank then checks the documents against the credit. If the documents are found in order, the bank will pay, accept or negotiate to JBL.
  4. d.      JBL, Authorized Branches & bank received seal to be affixed on the forwarding schedule.
  5. e.       JBL, Authorized Branches crossed the bill of exchange & transport documents immediately to protects loss or fraudulent.

JBL checks the documents. The usual documents are,

  1.                     I.     Bill of exchange.
  2.                   II.     Invoice.
  3.                 III.     Bill of lading or Airway bills
  4.                 IV.     Certificate of origin.
  5.                   V.     Packing list.
  6.                 VI.     Weight list.
  7.               VII.     Shipping advice.
  8.             VIII.     Non-negotiable copy of bill of lading.
  9.                 IX.     Pre-shipment inspection report.
  10.                   X.     Shipment certificate.

10.    Lodgment of Documents:

If the documents are found in order or the discrepancies in the document if any, are subsequently accepted by the applicant, the branch will record the particulars of the documents in the PAD Register (JB fx-06).

11.  Retirement of Documents:

JBL advise Importer about the date of lodgment of documents with full particulars of shipment to retire the   documents against payment or to dispose the import documents as per prearrangement, if any. Subsequent reminders (JF fx-06) are also to be issued every week till retirement of the bill. Such bills will be considered and be reported as overdue if the importer fails to retire the documents within 21 days of arrival of the relative import consignments at the port of destination.

12.    Endorsement of Non-Negotiable Copy Documents:

For clearance of cargo:

In the event of non-receipt of import documents relating to goods, which have already reached the port, the customer may ask the bank to provide a Shipping Guarantee/NOC to enable them to clear the goods, form the customers. The Shipping Guarantee may be given on the basis of a written undertaking from the clients by JBL. The S/G should state, inter alias, that he will in due course accept the original documents in spite of discrepancies, if any and bear the exchange loss on account of fluctuation of exchange rates between the dates of guarantee to actual date of lodgment of original documents, when received.

  • JBL, Authorized Branch will check the non-negotiable copy documents with the L/C terms and make entries of particulars of copy documents in the Shipping Guarantee Issue Register (MB fx-06)
  • JBL, Authorized Branch will recover Taka equivalent of F.C value of N/N copy documents and charges from the customer.
  • JBL, Authorized Branch will ensure return back of the shipping indemnity/guarantee from the shipping company by delivering original shipping documents to the importer after receipt of original documents form the payee bank.
  • JBL, Authorized Branch will mark cancellation on the shipping indemnity/guarantee returned by the shipping company through the importer and file it in the respective L/C file.

For customer Assessment Purpose:

At the request of the importer, JBL, Authorized branch may endorse Non-negotiable copy documents for custom assessment purpose. The branch will certify the value of F.C on the copy invoice and also certify the copy transport documents under single authorized signature. Endorsement charge is to be realized as per schedule of charges of the bank.

13. Amendments:

The JBL, Authorized Branch may allow amendments to the L/Cs only upon requests of the L/C applicants that do not violate foreign exchange regulations and import control regulations. Necessary charges and/or margin (where L/C value is increased by subsequent amendments) also to be realized/recovered from the customer before amending the L/Cs.

14. Cancellation of L/Cs:  

An irrevocable L/C cannot be cancelled without the agreement of the beneficiary and the confirming bank, if any.

The JBL, Authorized branch at the request of the importer may approach the L/C advising bank for cancellation of the L/C and such cancellation will only be effective upon consent of the beneficiary advised to the branch through the L/C advising bank. However, the JBL, Authorized branch may cancel the L/C without the consent of the beneficiary. Advising bank and confirming bank, if any, if the L/C expires and the JBL, Authorized branch receives no shipping documents within 15 days of expiry of the L/C. The branch should send a message to the concerned bank advising such cancellation and closure of L/C file due to expiry of the same. The JBL then cancels the Reimbursement Authorization, which has been provided to the Reimbursement Bank while opening the L/C. The branch will reverse L/C contra liabilities, refund margin and recover charges from the L/C applicant as per schedule of charges.

 Import Financing by JBL:

 Payment against Document (PAD):

The JBL, Authorized branch starts PAD procedure after getting all documents from the exporter of importer as evidence of exporting goods. Documents required for PAD is mentioned below:

  • Original (Non-negotiable) bill of Leading.
  • Commercial Invoice.
  • Certificate of Insurance.
  • Certificate of Origin.
  • Bill of exchange.
  • Pre-shipment Inspection Certificate.
  • Packing List.
  • Clean Report of Findings (CRF).

 Loan against Trust Receipt (LTR):

Under this LTR, Loan is allowed by JBL only to first class importers. Here only on the basis of trust without paying JBL anything or a partial amount, the importer takes the documents. Then importer is allowed 60-90 days time to make payment.

 Loan against Imported Merchandise (LIM):

The imported goods come to the port the party may fall into financial crisis and requests JBL to clear the goods from the port making payment to the exporter. In this case the party later may take the goods partly or fully from JBL by making required payment (if he/she takes the goods time-to-time payment will be adjusted simultaneously).

 Accounting Treatment for Opening Import L/C:

When the officer thinks fit the application to open a L/C, giving the following entries- creates the following charges-Table-Showing accounting treatment at the time of L/C opening:

ParticularsDebit/ CreditCharges in Taka
Customer’s A/CDebitAmount of L/C
L/C Margin A/C         CreditCommonly 10-20%
Commission A/C on L/C         Credit0.09%
VAT         Credit15% on commission
SWIFT Charge         Credit3000-3500/=
Service Charge         Credit1000-1200/=
Stamp         Credit150-300/=
Miscellaneous         Credit500-600/=

Table 4.1: Accounting treatment at the time of opening Import L/C

The following accountings treatments are given by JBL in different stages of import L/C are as following:

When import L/C is opened:

DateParticularsRef. NoDebit(TK.)Credit(TK.)
 Customers Liability . . . . . .  . Dr.

Bankers Liability  . . . . . . . . . Cr.

   

Table 4.2: Import L/C is Opened

When L/C against import is opened then bank as gives guarantee on behalf of customers so customer’s liability is transferred to bankers liability.

  When charges are taken by JBL:

DateParticularsRef. NoDebit(TK.)Credit(TK.)
 Party A/C . . . . . . . . . . . . . . Dr.

Margin on L/C . . . . . . . . Cr.

Commission on L/C . . . . Cr.

Vat on L/C . . . . . . . . . . Cr.

Swift charges . . . . . . . . Cr.

Bank service charges . . . Cr.

Stamps . . . . . . . . . . . . Cr.

Miscellaneous . . . . . . . . . Cr.

   

Table 4.3: Charges are taken by JBL

When different charges and margin is charged by bank for import L/C then party a/c or current deposit account of L/C opening party is charged against different charges and margin on L/C.

 When documents are received:

DateParticularsRef. NoDebit(TK.)Credit(TK.)
 PAD A/C……………………….…………….. Dr.

ETCA Head Office …………………….Cr.

Income A/C Telex…………………..…Cr.

Income A/C Interest on PAD A/C…….…….Cr.

Income A/c Exchange on Earnings …………Cr.

   
 Bankers Liability…………………………..Dr.

Customers liability…………………Cr.

   

Table 4.4: Documents are received

When documents is received than the amount provided to importer is debited under PAD account and head office and other charges as income is credited and at the same time as documents is received so MBL liability against that documentary credit is decreased and importers liability is increased.

q  When payment is made:

DateParticularsRef. NoDebit(TK.)Credit(TK.)
   Party A/C ……………………….Dr.

Margin on L/C ………………….Dr.

PAD cash A/C………………Cr.

   

Table 4.5: Payment Made

When payment is made by bank then importer account i.e. party a/c and margin on L/C account is debited PAD account is credited.

 Export section of JBL:

Export Procedures:              

The import and export trade in our country are regulated by the Import and Export (Control) Act, 1950.Under the export policy of Bangladesh the exporter has to get valid Export registration Certificate (ERC) from Chief Controller of Import & Export (CCI&E). The ERC is required to renew every year. The ERC number is to incorporate on EXP forms and other papers connected with exports. JBL mainly handles export of readymade garments, jute goods, leather, plastic scrap, handicrafts etc. The followings process must be passed by an exporter to open a documentary credit in JBL, Authorized branch:

(a) Registration of Exporters:  For obtaining ERC, intending Bangladeshi exporters are required to apply to the controller/ Joint Controller/ Deputy Controller/ Assistant Controller of Imports and Exports, Dhaka/ Chittagong/ Rajshahi/ Mymensingh/ Sylhet/ Comilla/ Barishal/ Bogra/ Rangpur/ Dinajpur in the prescribed form along with the following documents:

Nationality and Assets Certificate;

 Memorandum and Article of Association and Certificate of Incorporation in case of Limited Company;

 Bank Certificate;

 Income Tax Certificate;

 Trade License etc.

(b) Securing the Order: After getting ERC Certificate the exporter may proceed to secure the export order. He can do this by contacting the buyers directly or through agent. In this purpose the exporter may get help from:

 License Officer;

 Buyer’s Local Agent;

 Export Promoting Organization;

 Bangladesh Mission Abroad;

 Chamber of Commerce (local & foreign)

 Trade Fair etc.

(c) Signing the Contract: After communicating buyer, exporter has to get contracted (writing or oral) for exporting exportable items from Bangladesh detailing commodity, quantity, price, shipment, insurance and marks, inspection and arbitration etc.

(d) Receiving Letter of Credit: After getting contract for sale, exporter should ask the buyer for Letter of Credit (L/C) clearly stating terms and conditions of export and payment.

The following are the main points to be looked into for receiving/ collecting export proceeds by means of Documentary Credit:

  The terms of the L/C are in conformity with those of the contract;

  The L/C is an irrevocable one, preferably confirmed by the advising bank;

  The L/C allows sufficient time for shipment and negotiation.

(Here the regulatory framework is UCPDC-500, ICC publication)

Terms and conditions should be stated in the contract clearly in case of other mode of payment:

  • Cash in advance;
  • Open account;
  • Collection basis (Documentary/ Clean)

(Here the regulatory framework is URC-525, ICC publication)

(e) Procuring the materials:

After making the deal and on having the L/C opened in his favor, the next step for the exporter is to set about the task of procuring or manufacturing the contracted merchandise.

(f) Shipment of goods:

Then the exporter should take the preparation for export arrangement for delivery of goods as per L/C and incomer’s, prepare and submit shipping documents for Payment/ Acceptance/ Negotiation in due time.

  Documents for shipment:

 EXP form,

 ERC (valid),

L/C copy,

Customer Duty Certificate,

 Shipping Instruction,

 Transport Documents,

 Insurance Documents,

 Invoice,

 Other Documents,

 Bills of Exchange (if required)

 Certificate of Origin,

 Inspection Certificate,

 Quality Control Certificate,

 G.S.P. Certificate,

(g) Documents submission: 

In this step exporter who confined with JBL will prepare export related documents and submit those documents to JBL, foreign exchange authorized branch for negotiation. According to those documents JBL collects proceeds from the former issuing banks.

Export Financing by JBL:

Financing exports constitutes an important part of a bank’s activities. Exporters require financial services at four different stages of their export operation. During each of these phases exporters need JBL provides different types of financial assistance depending on the nature of the export contract are as follows:

  • Pre-shipment credit
  • Post-shipment credit

Pre-shipment credit:

Pre-shipment credit, as the name suggests, is given to finance the activities of an exporter prior to the actual shipment of the goods for export. JBL provides different type of Pre-shipment credit to its worthy customers for the following purposes:

  Cost of production or purchase

  Packing including any special packing for export

  Cost of special inspection or tests required by the exporter

  Internal transport cost

  Port, customs and shipping agent’s costs

  Freight and insurance charges if the contract is either C&F contract or a CIF contract and

  Export duty or tax etc

For Pre-shipment finance JBL, Authorized foreign exchange branch must consider the following factors related to exporters such as:

  • Honesty, integrity and capital of the borrower
  • Exporter experience in the line
  • Security offered
  • The margin and the rate of interest
  • The banks previous experience about the exporter
  • The standing of the foreign buyer

JBL provides facilities to extend Pre-shipment credit for contracts made on the basis of cables/fax/telex provided the following minimum information is available:

  • Details regarding customers
  • Particulars of the items
  • Quantity and unit price
  • Terms of sales and payment and
  • Date of shipment

An exporter can obtain credit facilities against lien on the irrevocable, confirmed and unrestricted export letter of credit in form of the followings from JBL, but PC and BTB L/C is most common form of pre shipment of credit provided by JBL:

a)      Export cash credit (Hypothecation)

b)      Export cash credit (Pledge)

c)      Export cash credit against trust receipt.

d)      Packing credit.

e)      Back to back letter of credit.

(a) Export cash credit (Hypothecation):

Here JBL only gets charge documents and lien on exports L/C or contract, bank normally insists on the exporter in furnishing collateral security. The letter of hypothecation creates a charge against merchandise in favor of JBL but neither the ownership nor the possession is passed to it.

(b) Export cash Credit (Pledge):

JBL provides such credit facility to exporter by pledge of exportable goods or raw materials. Here pledged goods are kept in JBL’s control and failure of the exporter to honor his commitment, JBL can sell the pledged merchandise for recovery the advance.

(c) Export Cash Credit against Trust Receipt:

In this case, JBL provides credit limit is sanctioned against trust receipt (TR). It’s also unlike JBL’s pledge facility, only difference is that the exportable goods remain in the custody of the exporter. This facility is allowed by JBL only to the first class party and collateral security is generally obtained in this case.

(d) Packing Credit:

Packing Credit is essentially a short-term advance granted by JBL to an exporter for assisting him to buy, process, manufacture, and pack and ships the goods. The highest limit of providing PC to a first class exporter by JBL is 10% of total export value.

  Charge Documents for P.C.

Responsible officer of JBL should obtain the following charge documents duly stamped prior to disbursement:

  1.                I.            Demand Promissory Note
  2.              II.            Letter of Arrangement
  3.            III.            Letter of Lien of Packing Credit (On special adhesive stamp)
  4.            IV.            Letter of Disbursement
  5.              V.            Packing Credit Letter

   Additional Documents for P.C:

(1)         Letter of Partnership along with Registered Partnership Deed in case of Partnership Accounts.

(2)         Resolution of the Board of Directors along with Memorandum & Articles of association in case of Accounts of Limited Companies. In case of Corporation, Resolution of the Board Meeting along with Charter is needed.

(3)         Personal Guarantee of all the Partners in case of Partnership Accounts and all the Directors in case of Limited Companies.

(e)  Back to Back Letter of Credit (BTB):

When exporter falls short of raw materials in that case, exporter gives lien of export L/C to bank as security and opens an L/C against it for importing raw materials. This L/C is called Back To Back L/C.  In back to back L/C, JBL gives facility to open BTB L/C up to highest 80% of lined export L/C.

  Documents Required for Opening a Back-to-back L/C:

In JBL, Authorized foreign exchanges Branch, following papers/ documents are required for opening a back-to-back L/C-

  • Master L/C
  • Valid Import Registration Certificate (IRC) and Export Registration Certificate (ERC)
  • L/C Application and LCAF duly filled in and signed
  • Proforma Invoice or Indent
  • Insurance Cover Note with money receipt
  • IMP Form duly signed

In addition to the above documents, the followings are also required to export oriented garment industries while requesting for opening a back-to-back L/C –

  • Textile Permission
  • Valid Bonded Warehouse License
  • Quota Allocation Letter issued by the Export Promotion Bureau (EPB) in favor of the applicant for quota items
  • In case the factory premises is a rented one, Letter of Disclaimer duly executed by the owner of the house/premises to be submitted.

A checklist to open back-to-back L/C is as follows –

i)        Applicant is registered with CCI&E and has bonded warehouse license;

ii)      The master L/C has adequate validity period and has no defective clause;

iii)     L/C value shall not exceed the admissible percentage of net FOB value of relative Master L/C;

iv)     Usage Period will be up to 180 days.

  Check Points Noted in Master L/C:

Following sensitive points of the Master L/C are carefully checked by the officials of JBL. This are-

i)          Issuing Bank is not reputed;

ii)         Advising credit by the advising Bank without authentication;

iii)       Port of destination absent;

iv)       Inspection clause;

v)         Nomination of specific shipping/Air line or nomination of specified vessel by

       subsequent amendment;

vi)       Bill of lading endorses blank, endorses to 3rd Bank, endorses to buyer or 3rd party;

vii)      No specific reimbursing clause;

viii)    UCP clause not mentioned;

ix)       Shipment/ presentation period is not sufficient;

x)         Original documents to be sent to buyer or nominated agent;

xi)      “Shipper’s load and count is not acceptable” clause;

xii)      Negotiation is restricted.

  Payment of Back-to-Back L/C:

Client gives the payment of the BTB L/C after receiving the payment from the importers. But in some cases, client sells the bills to the JBL. But if there is discrepancy, the JBL sends it for collection.  In case of BTB L/C, JBL gives the payment to the beneficiary after receiving the payment from the L/C of the finished product (i.e. exporter).  Bank gives the payment from DFCA (Deposit Foreign Currency Account) where Dollar is deposited in national rate.

In JBL for BTB L/C, opener has to pay interest at LIBOR rate (London Inter Bank Offering Rate), which is 4% to 7%. A schedule named PI (Payment Instruction); Forwarding Schedule is prepared while making the payment to JBL’s foreign corresponding banks. PI is prepared when the payment of L/C is made and it contains the followings:

i)        Reference number of the beneficiary’s bank and date.

ii)      Beneficiary’s name.

iii)     Bill value.

iv)     Payment order number and date.

 Post Shipment Credit:

This type of credit refers to the credit facilities extended to the exporters by the banks after shipment of the goods against export documents. Before extending such credit, it is necessary for JBL to look into carefully the financial soundness of exporters and buyers as well as other relevant documents connected with the export in accordance with the rules and regulations in force. JBL provides following post shipment credit to the exporters through:

  1. a.      Foreign Documentary Bill Purchase (FDBP):
  2. b.      Advances against Export Bills surrendered for collection;

(a) Foreign Documentary Bill Purchase (FDBP):

Most of the client submits the bill of export to bank for collection and payment of the BTB L/C. In that case, JBL purchases the bill and collects the money from the exporter. JBL subtracts the amount of bill for PC and BTB payment and gives the rest amount to the client in cash or by crediting his account or by the pay order.

For this purpose, JBL maintains a separate register named FDBP Register. This register contains the following information:

  • Date
  • Reference number (FDBP)
  • Name of the drawee
  • Name of the collecting bank
  • Conversion rate
  • Bill amount both in figure & in Taka.
  • Export form number
  • Export L/C number

(b) Advances against Export Bills surrendered for collection:

JBL also accept bills for collection of proceeds when they are not drawn under an L/C or when the documents, even though drawn against an L/C contain some discrepancies. JBL generally negotiates bills drawn under L/C, without any discrepancy in the documents, and the exporter gets the money from the bank immediately. However, if the bill is not eligible for negotiation, the exporter may obtain advance from JBL against the security of export bill. In addition to the export bill JBL generally ask for collateral security like a guarantee by a third party and equitable/registered mortgage of property.

Appraisal of Documentary Credit in JBL:

The sequence that are provided in open an export L/C up to its proceeds realization the following steps are generally passed in JBL, Foreign exchange authorized branch which are recorded in performance register are shown below:

When customer open export L/C in JBL, Foreign exchange authorized branch then it provides export finance through packing credit (PC), the limit of PC is highest 10% of export L/C value is provided to customers by JBL. Generally export L/C holder have advantage of opening back-to-Back (BTB) L/C under its export L/C, in JBL customers can open BTB L/C upto 80% of their export L/C value.

When BTB L/C documents is realized than JBL acknowledged the date and amount of payment for BTB Bills to its export L/C holder. The period of payment of BTB Bills is always kept longer than period of export value realization which helps to reduce risk of JBL.

When export proceeds than documents is presented in JBL than foreign documents bills is presented for purchase (FDBP) as 10% is given as PC and 80% is for BTB L/C so the remaining percentage of L/C value is purchased by JBL. When proceeds is realized than 10% is taken for PC and 80% is used for BTB payment and remaining is deposited to foreign currency (FC) Held account. If customers only present foreign documents bills for collection than remaining portion of export value other than PC and BTB payment will be deposited to parties CD account.

 Accounting Treatment for Opening Exports L/C:

In different stages of export L/C the different accounting treatment is taken by JBL, foreign exchange authorized branch, which are recorded in different register i.e. L/C Register, PAD, Due Date Register, BTB L/C Register, BTB Bills Register, Performance Register etc. The followings recording process is generally maintained by MBL, foreign exchange authorized branch in case of export L/C:

q  When export L/C is opened than no voucher is passed but when is PC is taken than following voucher is passed:

DateParticularsRef. NoDebit(TK)Credit(TK)
 PC A/C.…………………………………………………..Dr.

CD A/C………………………………………………Cr.

   

  Table 4.6: Packing Voucher

As packing credit is provided to the customers so JBL will deposit the packing credit amount to the parties’ current account.

When BTB L/C is opened than following vouchers is passed:

DateParticularsRef. NoDebit(TK)Credit(TK)
 Customers liability against BTB L/C.…….Dr.

Bankers liability against BTB L/C…Cr.

   
 CD A/C……………………………………………….Dr.

I/A on Commission………………………..Cr.

I/A on service Charges………………….Cr.

I/A on SWIFT…………………………………Cr.

I/A on Stamps……………………………….Cr.

I/A on Miscellaneous..…………………..Cr.

   

 Table 4.7: BTB L/C is opened

When BTB L/C is opened than party’s liability is transferred to JBL so banker’s liability against BTB L/C is credited and different charges is taken from party so amount of different charges is transferred from party account to income account.

When documents under BTB L/C is received lodgment is made and due date is realized than vouchers are passed as follows:

DateParticularsRef. NoDebit(TK)Credit(TK)
 Banker’s liability against BTB L/C…………Dr.

Customers liability against BTB   L/C…….Cr.

   
 Customers liability against BTB Bills.…….Dr.

Bankers liability against BTB Bills…Cr.

   
 CD A/C…………………………………………Dr.

Income A/C………………………………Cr.

   

Table 4.8: BTB L/C is received lodgment made but due date is realized

When documents against BTB L/C are received than bankers liability on BTB L/C is reduced and banker’s liability for BTB Bills is increased and income is also increased for lodgment process.

When due date arises:

DateParticularsRef. NoDebit(TK)Credit(TK)
 Bankers liability against BTB Bills…..…….Dr.

Customers    liability    against     BTB  Bills ..Cr.

   

Table 4.9: Due date arises

When due date appears bankers liability against BTB Bills is decreased by MBL and customers liability against BTB Bills is increased by passing above vouchers.

For BTB payment following treatment will be given:

DateParticularsRef. NoDebit(TK)Credit(TK)
 FC Held ……………………………………… Dr.

Head Office………………………………Cr.

   
 Head Office………………………………………Dr.

I/a on Exchange Gain……………………Cr.

I/A on Commission………………………..Cr.

I/A on VAT………………….………………Cr.

I/A on P.O……………………………………Cr.

I/A on postage……………………………….Cr.

   

 Table 4.10: BTB payment

For payment the amount of foreign currency is at first send to head office lower rate and at time of payment currency is bring at higher rate the amount is distributed in different income account and difference between the higher and lower rate is treated as exchange gain.

When documentary loan or FDBP Loan is given according to B/l and delivery Challan the following entry is given:

DateParticularsRef. NoDebit(TK)Credit(TK)
 FDBP Loan A/C ………………………………Dr.

I/A on Courier Service….………………Cr.

I/A on H.C………………………………Cr.

I/A on Source Tax………………………..Cr.

PC A/C………………………………….Cr.

CD A/C…………………………………Cr.

   

Table 4.11: FDBP loan created

When foreign bills are purchased by JBL than FDBP loan account is debited against different income account, PC account and as well as CD account. The amount of bills purchased will be remaining portion of the total export L/C value after deducting BTB L/C and PC value.

Foreign remittance:

Foreign remittance means remittance of foreign currencies from one place/persons to another place/person. In broad sense, foreign remittance includes all sale and purchase of foreign currencies on account of Import, Export, Travel and other purposes. However, specifically foreign remittance means sale & purchase of foreign currencies for the purposes other than export and import. As such, this chapter will not cover purchase & sale of foreign currencies on account of Import & Export of goods.

On March 24, 1994 Bangladesh Taka was declared convertible for Current account International Transaction. As a prelude to this wide-ranging reforms were made in the country’s foreign exchange regime to lay the ground for a market friendly environment to induce investment, growth and productivity. Following liberalization under convertibility, most remittances are now approved by the Authorized Dealers themselves on behalf of the Central Bank. Only a few remittances of special nature require Bangladesh Bank’s prior approval.

Foreign Remittance Section of JBL:

Foreign exchange department of JBL, foreign exchange authorized branch are responsible to deal with outward and inward remittance other export and import only when remittance are in foreign currency. JBL has already made foreign remittance arrangement with money grume,

Workings of this department:

  • Overall supervision of Foreign Remit. Dept.
  • Foreign TT payments & Purchase of F. Drafts, preparations of F.B.P. (Foreign Bill Purchased).
  • Issuance of outward TT & FDD.
  • Issuance of proceed responding certificate (PRC).
  • Foreign Collection, Bangladesh Bank Clearing Check Collection, which comes from all branch of JBL.
  • Withdrawal from F.C. A/C.
  • Encashment of T.C. & Cash Dollar and Sterling Pound.
  • Deduction of Tax and VAT. On behalf of Bangladesh Bank.
  • Preparation of related statements including convertible Taka Accounts.
  • Preparation of IBCA & IBDA and Balancing of Collection and other special assignment as desired by Department in charge.
  • Balancing of Account Statements.
  • Compliance of audit & inspection.
  • Statement of all related works submitted to Bangladesh Bank.

All foreign remittance transactions are grouped into two broad categories of remittance i.e. Outward remittance & Inward remittance. As an AD MBL foreign exchange department focuses on these two sources of remittance.

Outward Remittance of JBL:

The term “Outward remittances” include not only remittance i.e. sale of foreign currency by TT. MT, Drafts, Traveler’s cheque but also includes payment against imports into Bangladesh & Local currency credited to Non-resident Taka Accounts of Foreign Banks or Convertible Taka Account. The main three type of outward remittance find JBL are as follows:

  1. 1.      Private Remittance
  2. 2.      Fiscal & Business Travel
  3. 3.      Commercial Remittances

 Inward remittance of JBL:

The term” Inward Remittance” includes not only purchase of Foreign Currency by TT, MT, Drafts etc. but also purchases of bills, purchases of Traveler’s cheques. The main two sources of inward remittance are proceeds realized from export process and also a strong source Bangladeshi workers remittance from abroad.

                   1. Purchase of Currency Notes, Travelers cheques, Drafts etc

                   2. Dealing in Foreign Currency Notes & Coins

 Reporting to Bangladesh Bank by JBL:

As authorized dealer of foreign exchange Jamuna Bank works as important source of Bangladeshi government to collect information about remittance. JBL has to report monthly to Bangladesh Bank in following forms:

 Types of out ward form:

Two forms are used for Outward Remittance of foreign Currency such as: –

  • IMP FORM
  • T.M. FORM

IMP Form:

All outward remittance on account of Imports is done by form IMP. JBL, foreign exchange authorized branch weekly informs Bangladesh Bank about outward remittance of import and it sends IMP FORM information in each month to BB. Among four copies of IMP Form original copy is kept by customs and JBL fill up Duplicate, Triplicate, and Quadruplicate copy of IMP Form with following information Such as:

  • IMP number with JBL’s code, serial no. and year code
  • Name and branch of bank
  • Amount of foreign currency paid in figures and in words
  • LCAF number, Date and value in Taka according to LCAF
  • Description of goods along with unit, quantity and H.S. code.
  • Invoice value
  • Country of origin
  • Port of shipment, mode of transport and place of importation
  • Code of reporting month, country receiving payment, county of origin goods, commodity, unit, quantity, type of LCAF, currency, amount are also reported in IMP Form by JBL
  • Imp from will be duly signed and sealed by importer and authorized officer of JBL.
  • Duplicate, Triplicate copy of IMP Form are send to Head office of JBL by JBL, foreign exchange authorized branch where as head office send Duplicate copy to BB and Triplicate copy is kept in head office and Quadruplicate copy is kept in regarding import L/C file by JBL, foreign exchange authorized branch.
  • Along with IMP Form Proforma invoice, commercial invoice and LACF is attached.

 T.M. Form:

For all other outward remittances form T.M. is used. JBL, foreign exchange authorized branch provides all outward remittance information other than import through Travels & Miscellaneous (T.M) FORM to BB. The following information is provided through T.M Form:

  • Name and branch of bank
  • Amount of money remitted outside the country
  • The name, address and country of the person to whom currency is paid
  • Code of month of reporting, country receiving payment, purpose of payment, category, currency, amount.
  • Person remitting the currency and authorized officer of JBL, foreign exchange authorized branch, duly signs T.M Form.

Types of inward form:

Two forms as prescribed by Bangladesh Bank are used for purchase of Foreign Currencies such as.

  • EXP form
  • Form C

 EXP Form:

Remittances received against exports of goods from Bangladesh are done by form EXP. JBL; foreign exchange authorized branch weekly informs Bangladesh Bank about inward remittance of export and it sends EXP FORM information in each month to BB. JBL fill up two copy of EXP Form with following information such as:

  • EXP number Duplicate, Triplicate, and Quadruplicate with JBL, foreign exchange authorized branch code, serial number and year code.
  • L/C number, date of L/C opening, L/C value.
  • Amount proceeds realized method of currency such as Taka or foreign currency and date of realization.
  • Among two copies one copy is send to BB along with JBL head office and another copy is kept in relative documentary credit file as office copy by JBL, foreign exchange authorized branch.
  • Along with duplicate copy commercial invoice and short shipment certificate if any is attached

Form C:

Inward remittances equivalent to US $2000/- and above are done by Form” C”. However, declaration in Form C is not required in case of remittances by Bangladesh Nationals working abroad. Utmost care should be taken while purchasing Currency Notes, Travelers cheque, Demand Draft & similar Instrument for protecting the bank from probable loss as well as safety of the Bank officials concerned. JBL, foreign exchange authorized branch provides information about person who remits currency and relationship with the person to whom currency is remitted and reason for remitting currency to BB.

In case of reporting for export and import to Bangladesh Bank JBL, foreign exchange authorized branch categories IMP FORM and EXP FORM into four categories according to currency and their characteristics those are as follows:

 U.S Dollar- the documentary credit opened on US Dollar is reported to BB under this category.

 ACU Dollar- the export import related to India, Iran, Nepal, Pakistan, Sri Lanka, Bhutan and Myanmar will be reported to BB at ACU Dollar.

 EURO- the documentary credit opened with EURO exchange based countries are reported under this category.

 EPZ- the documentary credit opened related to EPZ industries are reported to BB under this category.

Exchange Rate and Exchange Gain of JBL:

Exchange rate is the rate at which one currency is converted to another currency. In case foreign exchange the rates, which are used to convert in local or any other currencies, incase of foreign dealings. Bangladeshi banks use an exchange rate that is convertible to different currencies into BDT.

Exchange rate is determined by Bangladeshi banks from interbank offer rate (IOR). Bangladesh bank provides interbank offer rate and the JBL purchase currency at spot rate where as spot rate is addition of different primary chargers such cost of transfer, cost of freight etc along with interbank offer rate.

In case of selling of currency or payment of import JBL, foreign exchange authorized branch adds different charges as documents and telex charges to customers so BDT increases and incase of buying or receiving export value charges as documents and telex charges are deducted from customers so BDT decreases in case of selling. In case of selling charges are added and incase of buying charges are deducted from spot rate because JBL is most responsible to carry out documents charges and telex charges for others or customers.

Exchange gain of JBL, foreign exchange authorized branch arises from transaction foreign currency with Head Office. In case payment of import or selling currency convertible to BDT JBL foreign exchange authorized branch buys from Head Office 0.10 paisa lower and sells it to customers at 0.10 paisa higher which will provide exchange gain. In case of currency buying or export payment receiving JBL, foreign exchange authorized branch buys currency from customer and sells it 0.20 paisa higher than purchase rate from customers to Head Office that ultimately provides exchange gain. So JBL, foreign exchange authorized branch arranges exchange gain in following two ways:

  • In case of payment of import or selling currency JBL, foreign exchange authorized branch buys currency from Head Office at 0.10 paisa lower than selling price.
  • In case of payment received of export or buying currency JBL, foreign exchange authorized branch sells currency to Head Office at 0.20 paisa higher than buying price.

  Foreign Exchange Risk Management by JBL:

Foreign exchange rate fluctuations affect banks both directly and indirectly. The direct effect comes from banks’ holdings of assets (or liabilities) with net payment streams denominated in a foreign currency. Foreign exchange rate fluctuations alter the domestic currency values of such assets. This explicit source of foreign exchange risk is the easiest to identify, and it is the most easily hedged.

Foreign exchange risk is treated by JBL as market risk because market risk is the potential for loss from changes in interest rates, foreign exchange rates and equity and commodity prices. So transactions related to foreign exchange positioning will bring market risk to JBL. The vulnerability of the JBL’s as a whole to foreign exchange fluctuations depends on more than just its holdings of foreign exchange.

Foreign exchange risk is defined as the possibility of losses due to change in exchange rates according to market forces. The foreign exchange risk of JBL is minimum as all the transactions are carried out on behalf of the customers against underlying foreign exchange transactions.

Treasury Division of JBL independently conducts the transactions and the JBL head office of Treasury is responsible for verification of the deals and passing of their entries in the books of accounts. All foreign exchange transactions are revalued at (Market-to-Market) rate as determined by Bangladesh bank at the month-end. All Nostro accounts are reconciled on monthly basis and the management for their settlement reviews outstanding entries beyond 30 days.

 Income Sources of Foreign Exchange Department:

The different income sources of foreign exchange department of JBL, foreign exchange authorized branch are as follows:

  • Income on commission of L/C.
  • Income on data transmission/ SWIFT charges
  • Income on postage
  • Income on Courier Charge
  • Income on discrepancies
  • Income for amendment charges
  • Income from IMP and EXP fill up Charges
  • Income from exchange gain
  • Income on miscellaneous charges

 Ending Summary:

Foreign Exchange department is doing well, rendering all the services related to international trade and remittance. It also involves handling of import business through opening letter of credit and handling of export business.

Findings

 SWOT Analysis of JBL:

SWOT analysis is an important tool for evaluating the company’s Strength, Weakness, opportunities, and Treats. It helps the organization to identify how to evaluate its performance and scan the macro environment, which in turn would help organization to navigate in the turbulent ocean of competition. Problem Identification

STRENGTHS

WEAKNESSES

 

ü  Experienced top management.

ü  Satisfactory capital base.

ü  Low infection in loan exposure.

ü  Prospective IT infrastructure.

 

 

ü  Limited market share.

ü  Exposure to large loan‑

ü  Excessive dependency on term deposits.

ü  Weak fund management.

ü  High cost of fund.

ü  Islamic Branch funds are not ring fenced.

OPPORTUNITIES

THREATS

             

ü  Regulatory environment favoring   private sector Development.

ü  Credit card.

ü  Small and medium enterprises.

 

 

ü  Increased competition in the market for quality assets.

ü  Supply gap of foreign currency.

ü  Over all liquidity crises in money market.

SWOT Analysis of JBL

 Problem Identification:

During internship period in Jamuna Bank Limited Gazipur Chowrasta Branch tile following problems are observed.

  • Human resource of any organization is considered as a valuable asset. But human resources, in the branch, are not equipped with adequate banking knowledge. Majority of the human resources have lack of basic knowledge regarding money, banking finance and accounting. Without proper knowledge in these subjects, efficiency cannot be optimized. Bank can  arrange  training program on these subjects.
  • There is shortage of computer in general banking section. Sometimes the shortage of computer makes some unfortunate event on that section.
  • Lack of internet connection. Our branch office use GP internet service that is not enough for Banks daily activities.
  • Flora On-line banking software is used by JBL and this is quite difficult to use for the employee as the employees are not well trained.
  • This bank does not have any plan to enter into the Credit Card Market. It is well versed that tomorrow’s payment will be consisted of only plastic money (Credit Card). A large part of business transaction will be done by credit card III near future. In western world, more than 50% of transactions are in credit card this bank does not prepare from now on, it cannot compete in the future market. So, the branch should give special attention to the introduction of Credit Card.
  • Since a number of new banks are coming to existence with their extended customer service pattern in a completely competitive manner. Customer-services must be made dynamic and prompt.

Recommendations:

  • High administrative control should be exercised in JBL Gazipur Chowrasta branch and proper delegation of authority should be established so every officers of every department should be confined with their own responsibility and duty, which will bring fluency in operation.
  • As authorized dealers JBL branch must follow of rules regulation regarding to foreign exchange and currency transactions in all aspects. It should time to time provide all necessary information to officers of foreign exchange department for adequate knowledge about applying rules and regulations in every related transaction.
  • The process opening documentary credit and steps followed by JBL to settlement of documentary credit should be liberalized as much as possible. If process is liberalized according to regulations it will be attract customers.
  • The procedures followed by JBL for open documentary credit upto settlement is lengthy and some cases are not as per committed. So the whole procedures should be integrated to provide more efficiency hat will increases satisfaction of the customers.
  • The recording procedures and documents keeping process of in this department must be improved through sequential effort system and for all type recoding of this department should be computerized to get this improvement.
  • Foreign exchange department of JBL branch should provide adequate computerized network facilities that will ultimately provide supports to all officers of this department and as well as improve quality of customer service by increasing swiftness of activity.
  • JBL should provide different facilities and incentives to customers who are related with foreign exchange transactions and also increase quality of services that will attract the customers and that’s will increase foreign exchange transactions of JBL.
  • As foreign exchange transactions are guided by strict rules and regulations so all officers under this department must be properly trained and give adequate knowledge so that they apply relative regulations in practical operations.
  • Enough motivation and incentives should be provided to all officers of JBL, so a positive attitude about work is buildup that will increase the quality of service provided by them.
  • The number of human resources in foreign exchange department is really insufficient to give services to huge volume foreign exchange transactions. So, number of employee should be increased in this department.
  • JBL have kept huge number of files regarding to export and import. As the huge volume of files is kept so its not all time possible for officers to keep proper format of those files so all officers of this department should try to reduce these irregularities.
  • Customer of this department should be offered occasional gifts and discounts, attractive incentives that can make service more attractive and keep consumer delight.
  • As above those all incentives that are necessary to improve the quality of service of the foreign exchange department of JBL must be taken. JBL as service providing organization provides services through all its departments so quality of services must be increased to attract and extend customers.
  • JBL should improve its technological support and communication network system by using different advance technological support system that are used in different competitive banks in Bangladesh. It should also establish high quality integrated computerized networking system for foreign exchange department as well as for all departments of JBL.

Conclusion:

Bank is the most common type financial intermediary in todays globalizes world. Banks play important constructive role in the economy. Banking sector of Bangladesh quite positively contributing to its economy. In today’s globalizes world it’s impossible to stay without transacting among two countries i.e. foreign trade and banks are the only safe way transacting international transactions. The different nationalized and privatized banks are providing services among them foreign exchange services are important for globalized transactions. As a commercial bank of Bangladesh Jamuna Bank Limited is providing different services along with foreign exchange services. JBL is trying to establish is a stable position in competitive market and providing positive contribution to economy through different services as well as foreign exchange services. JBL foreign exchange department facilities not only induce export-import and private transactions but also help to encourage economic development of Bangladesh. The new mode of planned advance facilities that will be enforced in future by Jamuna Bank Limited for improving service quality. So I hope as Jamuna Bank Limited has great chance of being one of the leading banks of Bangladesh by enforcing its available opportunities and will highly contribute to the economic development of Bangladesh in future.

Bibliography:

1.      Text Books:

  • Ashraf Ali. Syed, 1986, Foreign Exchange & International Finance, Page: 35-42,78-84,129-143,152-160.
  • Varshney R.L, 1992, International Financial Management, Page: 264-297, 330-336.
  • Nurul Islam, 1976, Foreign Trade and Economic Controls in Development, Page: 65-79.
  • Rodriguer R.M. and Carter, 1981, International Financial Management, Page: 23-36, 91-102.
  • Kate L. Turabian, 1972, A Manual for Writers of Term Papers, Theses and Dissertations, page: 1-15, 125-143.

 2.Journals and Articles:

  • Kavaljit Singh, 2002, Global Foreign Exchange Trading: Status and Issues, Asia Pacific Research Network Journals, Vol-6, No-4.
  • Ian H. Giddy and Gunter Dufey, The Management of Foreign Exchange Risk, Resources in Finance, New York University and University of Michigan.
  • Harun-Ar-Rashid Khan, M. Farid Ahmed, Ehsan Latif, 1993, Foreign Banks in Bangladesh: Performance& Limitations, Dhaka University Journal Of Business Studies, Vol- 14, No-1, Page: 185-198.
  • Begum Khaleda Khanam & md. Abdul Hakim, 2002, Performance Apprisal system in Private Banks, Dhaka University Journal Of Business Studies, Vol- 23, No-1, Page: 129-136

 3.      Instructional Publications:

  • Bangladesh Bank, 1996, Guidelines for Foreign Exchange Transactions, Vol-1, Page: 4-29.
  • Jamuna Bank Limited, 2009, Annual Report.

 4.      Web Sites:

  • Foreign Exchange, 1998, Available at: www.investorwords.com
  • Methods of Expanded Payments, 2006, Available at: www.fnb.com
  • Cambridge Mercantile Corporation, 2004,Foreign Exchange Global Payments, Available at: www.cambridgefx.com
  • Convertibility of Taka for Foreign Transactions, Available at: www.bbank.org
  • Trade Port, Global Trade Tutorial, March 17, 2005 Available at: www.caltp.org
  • SITPRO, February 23, 2007, Methods of International Payments, Available at: www.info@sitpro.org.uk
  • WORLDLawDirect, What are letters of credit in international trade?, April 15, 2005, Available at: www.worldlawdirect.com
  • Freightgate-International Trade Terms, February 5,2007, Available at: www.freightgate.com
  • International Finance Corporation, 1999, The Basics of Foreign Trade and Exchange, Available at: www.ifc.org
  • Foreign Currency Account, 2005, Available at: www.bankasia.com
  • Foreign Exchange Risk, Available at: www.riskinfo.org
  • Information about Mercantile Bank Limited, Available at: www.jamunabankbd.com

5.      Newspaper:

  • Financial Statements 2006 Of Jamuna Bank Limited, Doynik Jhonokonto, 3 March, 2007, Page: 13-16
  • Foreign Exchange Management, New Nation, 1 March, 2006

Foreign Exchange