Bangladesh Bank has allowed banks to maintain accounts in Chinese Yuan with their corresponding branches abroad to settle cross-border transactions in Chinese currency.
In a circular on Thursday, the central bank said, "To bring wider scope, it has been decided that Authorised Dealers (ADs) may maintain accounts in Chinese Yuan Renminbi (CNY) with their correspondents or branches abroad for settlement of cross border transactions executed in this currency."
Bangladesh Bank took the decision following requests from China.
In recent times, strong calls were made in support of using alternative foreign currency amid the supply shortage of the US dollar in the country.
Bd-pratidin English/Golam Rosul
