BB allows banks to maintain Yuan account to settle cross border transactions

Bangladesh Bank (BB) has allowed banks to maintain accounts in Yuan with their corresponding branches abroad to settle cross border transactions in Chinese currency.

"To bring wider scope, it has been decided that Authorized 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," said a BB circular today.

Previously, the authorized dealers could maintain foreign currency clearing account with the Bangladesh Bank in the Chinese currency.