Foreign Exchange
CHAPTER 1
BACKGROUND OF THE STUDY
1.1 INTRODUCTION
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
BACKGROUND OF THE STUDY
1.1 INTRODUCTION
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
Bibliography: * Bangladesh Bank (1997), Guideline for Foreign Exchange Transactions, Vol-1. * Ali, Syed Ashraf (1995), Foreign Exchange and Finance of Foreign Trade, First Edition, Lita Academics, Dhaka. * Madura, Jeff International Financial Management 9th Edition * Annual Report of PBL 2010, 2009,2008,2009,2006