BACKGROUND OF THE STUDY
The business of foreign exchange is getting increasingly complex and intensely competitive. However, in the backdrop of phenomenal growth of Bangladesh’s external sector, foreign exchange business provides a challenge as well as an excellent opportunity to accelerate the growth of bank’s own business This research paper is done on the foreign exchange department of Prime Bank ltd. It tries to capture nearly the entire range of activities typically performed in the foreign exchange department of the bank and do some statistical analysis to determine the current position of the foreign exchange business of this bank. Prime bank limited is a leading bank in case of foreign exchange business. The bank provides various types of services for facilitating export and import and foreign remittance. It provides the LC facilities for making the import and export easier. It normally provides irrevocable letter of credit and under this it provides letter of credit (sight), letter of credit (deferred), and back to back L/C etc. It also provides Payment against Document (PAD) and Loan against Imported Merchandise (LIM) facilities. Prime Bank Ltd makes the remittance transfer easier to the immigrants. It offers remittance services to Bangladeshi nationals in Singapore and UK by its two subsidiary companies ie. Prime Exchange Company PTE Ltd and Prime Exchange (UK) Ltd PBL has established correspondent banking relationship around the world for routing international transactions through correspondent banks. PBL has a well structured treasury department to manage the foreign exchange risks and it complies with all the rules of Bangladesh Bank in case of foreign exchange business. In the analysis part of the report I have analyzed the strength and weakness and opportunities and threat of the foreign exchange department by SWOT analysis, then do trend analysis on some related variables of foreign exchange and finally do the regression analysis for establishing relationship with the reserve of foreign currency by taking two other independent variables.
1.2 OBJECTIVE OF THE STUDY
1.2.1 Broad objective
The main purpose or objective of the report is to assemble practical knowledge and experience about the banking activities performed by the different officials into the Foreign Exchange Department. The report is prepared with the purpose of getting an overview of Foreign Exchange Business through LC operation at Prime Bank Ltd. 1.2.2 Specific Objective
* To understand the mechanism of Foreign Exchange operations of Prime Bank Ltd. * To analyze the internal strengths and strategies for successfully operating the foreign exchange business and internal weaknesses in case of operating. * To do the trend analysis of some important variables relating to foreign exchange business. * To recommend actions that may be necessary to redesign the foreign trade procedure of Prime Bank Ltd. 1.3 METHODOLOGY OF THE STUDY
The information for this report has been prepared from practical work experience at the branch. The information has been collected from the most credible sources. I have categorized it into two sections. The first one is Primary Source and the other is Secondary Source. Quantitative and Qualitative judgments are also applied in this report which has made the study more meaningful and presentable 1.3.1 Source of Data
Data collection is very important is preparing a report. In order to make the report more and meaningful I have used two types of sources. These are – 18.104.22.168 Primary Source:
A critical source of information was collected through discussions with the officers of Md Reza Hossain(SAVP),Md Mahfuzur Rahman(SEO),especially in logistic and Support Services Division and Foreign Exchange Dept. especially Mr. ATM Zakaria, (Assistant Vice President), Mr. Moshiur Rahman Khan (First Assistant Vice President), Mr. Abdullah Al...