Using the real-time gross settlement (RTGS) system, in September, $770 million worth of transactions were completed.
Only two currency transactions were made in the first month, although Bangladesh Bank allowed instant transactions of six currencies in total.
The US dollar and the euro were used in a combined total of 20,553 transactions during the month, according to statistics from the Bangladesh Bank.
The central bank on September 4 allowed instant transactions in the US dollar, UK pound, euro, Canadian dollar, Japanese yen, and Chinese yuan.
Data analysis also revealed that individual-to-individual transactions were 909 while the rest were bank-to-bank, mostly between private banks.
UCB Bank was the top performer in instant foreign currency transactions, followed by Eastern Bank, Exim Bank, Prime Bank and Dhaka Bank.
Regarding the RTGS, Bangladesh Bank officials said the new system facilitates the use of foreign currencies as banks can now use that on the same day of the transaction.
Even an amount of foreign currency can be used by multiple banks on the same day if needed.
Previously, the medium of interbank transactions process was paper and pen based and usually took a day or two to process.
Even a month ago, only the interbank transaction was in operation in the case of the domestic currency and at that time the internal transactions of the banks were settled at the end of the day.
However, the Bangladesh Bank as part of its digitization efforts launched the real-time gross settlement system for local currency in late 2015, with an aim to facilitate safe, secured and efficient interbank payment systems.
Domestic foreign currency transactions were allowed last month.
Requesting anonymity, a private bank treasury head said that, earlier, foreign currency transactions could be made through the foreign demand draft (FDD) system only, which used to take two days, whereas it can now be processed instantly.
“The cost per transaction also decreased to Tk100 from the previous Tk500," he informed.
Bangladesh Bank issued a circular in this regard on August 28 this year.
It was said there, real-time gross settlement (RTGS) or immediate transactions of other foreign currencies, including the dollar are going to start.
In this new system, banks will be able to settle transactions in a more modern and automated manner.
Inaugurating the program on September 4, Bangladesh Bank Governor Abdur Rouf Talukdar said that the implementation of automated clearing in foreign currency in the RTGS system has opened a new horizon for foreign currency transactions within the country and this modernization will contribute to the implementation of Vision 2041 by creating a cashless society.
