1 Seizing Efficiency: Real-Time Gross Settlement Empowers Yuan Trading, Overcoming Limitations

  • Chinese yuan now tradable via Real-Time Gross Settlement (RTGS) in Bangladesh
  • RTGS platform facilitates rapid and large interbank transactions
  • RTGS already in use for currencies like USD, GBP, EUR, JPY, and CAD
  • Real-time settlement within 30 seconds, eliminating delays
  • Integration of RTGS across 11,000 branches of commercial banks in Bangladesh
  • RTGS allows singular currency trading, ensuring clarity and adherence
  • No transaction limits on foreign currency exchanges via RTGS
  • Commercial banks must adhere to Guidelines for Foreign Exchange Transactions
  • Mandatory opening of foreign currency account with clear specifications


In a significant milestone, the Bangladesh Bank stated that, beginning February 4th, the Chinese currency yuan will be exchanged at the interbank level via a specialised internet platform known as Real-Time Gross Settlement. This move is consistent with the practices of other established foreign currencies and aims to allow speedy and big transactions in the banking sector.

Real-Time Β Enhanced Currency Exchange Platform :

The RTGS platform, which is already in use for currencies such as the US dollar, British pound, euro, Japanese yen, and Canadian dollar, offers a streamlined mechanism for interbank transactions. Unlike previous techniques, which can take hours or even days to complete transactions, RTGS allows for real-time settlement in a maximum of 30 seconds, assuring efficient and rapid currency exchange.

Seamless integration between banks :

Since its beginning on September 4th, 2022, the RTGS service has been widely embraced by all 11,000 commercial bank branches in Bangladesh. This integration guarantees that the platform is accessible and used consistently across the banking sector, promoting a standardised approach to foreign currency transactions.

Singular Currency Trading :

One important guideline from the Bangladesh Bank is that the RTGS service allows for the exchange of just one type of currency at a time at the interbank level. This means, for example, that the pound can only be traded for another pound, maintaining transparency and adherence to recognised trading procedures.

Transaction Limits are Flexible :

One advantage of the RTGS service is that there are no restrictions on the quantity of foreign currency that can be exchanged in a single transaction. This adaptability meets the diverse transactional needs of the banking industry and allows for fast and rapid currency swaps.

Compliance and Regulation :

Commercial banks that use RTGS services must follow the Guidelines for Foreign Exchange Transactions to guarantee adherence to standardised procedures and laws. This involves the necessary creation of a foreign currency account with certain account type requirements set by the central bank.

Finally, the implementation of RTGS for Chinese yuan trading represents a significant step forward in improving the efficiency and efficacy of foreign currency transactions in Bangladesh’s financial sector. The banking sector wants to optimise operations, reduce transactional delays, and create an atmosphere conducive to seamless currency transactions by employing innovative internet systems such as RTGS.


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