Internship report on “Foreign exchange activities of BASIC Bank Ltd. Ajampur Branch”
Nowadays, education is not just limited to books and classrooms. In today’s world, education is the tool to understand the real world and apply knowledge for the betterment of the society as well as business. From education the theoretical knowledge is obtained from courses of study, which is only the half way of the subject matter. Practical knowledge has no alternative. The perfect coordination between theory and practice is of paramount importance in the context of the modern business world in order to resolve the dichotomy between these two areas. Foreign Exchange means foreign currency and it includes any instrument drawn, accepted, made or issued under clause (13), Article 16 of the Bangladesh Bank Order, 1972. All deposits, credits and balances payable in any foreign currency and draft, travelers check, letter of credit and bill of exchange expressed or drawn in Bangladeshi currency but payable in any foreign currencies. Bangladesh Bank issues Authorized Dealer (AD) license by observing the bank’s performance and also the customers associated with the bank for conducting foreign dealings. Foreign Exchange Regulation Act, 1947 nobody can export by post and otherwise than by post any goods either directly or indirectly to any place outside Bangladesh, unless a declaration is furnished by the exporter to the collector of customs or to such other person as the Bangladesh Bank (BB) may specify in this behalf that foreign exchange representing the full export value of the goods has been or will be disposed of in a manner and within a period specified by BB. Imports are foreign goods and services purchased by consumers, firms & Governments in Bangladesh. To import, a person should be competent to be a ‘importer’. According to Import and Export Control Act, 1950, the Office of Chief Controller of Import and Export provides the registration (IRC) to the importer. L/C is on instrument issued by a bank on behalf of one of its customers authorizing an individual or firm to draw drafts on the bank or one of its correspondents on its account under certain condition stipulated in the credit. The basic function of this department are outward and inward remittance of foreign exchange from one country to another country. In the process of providing this remittance service, it sells and buys foreign currency. The conversion of one currency into another takes place at an agreed rate of exchange, in where the banker quotes, one for buying and another for selling. In such transactions the foreign currencies are like any other commodities offered for sales and purchase, the cost (convention value) being paid by the buyer in home currency, the legal tender. Foreign correspondent relationship facilitates foreign trade operation of the bank, mainly in respect of export, import and foreign remittance. The number of foreign correspondents and agents of the bank in the year 2007 stood at 322, which covers important business and trade centers of the world. The bank maintains excellent relationship with the leading international banks, for handling all foreign. Correspondent and maintaining all foreign business there is an International Division, which is called ID. Where the seller provides ocean marine insurance it is necessary to furnish insurance certificates, usually in duplicate indicating the type and amount of coverage involved. Here again these are negotiable documents and must be endorsed before submitting them to the bank BASIC Bank Ltd. is committed to boosting up export; reduce import, rising of Gross Domestic Product (GDP) and increase employment. All the branches of BASIC Bank Limited are authorized dealer of Foreign Exchange Business. The authorized dealer motivates the importer to import Raw materials, Fabrics, Frozen fish, jute items, and electronics goods, Accessories, Chemicals, and Vegetable Fat etc. The import or exports are motivated by the BASIC Bank Limited to the foreign exchange business, particularly to open the letter of credit. A letter of credit offer advantages both to the importer and exporter. The advantages accruing to either of the parties differ depending upon the nature of credit opened. There are certain Common benefits accruing from the use of credit as under.
- Project Report of BBA