Performance Evaluation of Foreign Exchange

Operation: A study on Janata Bank Ltd.;

Supervised By
Sabiha Farzana Moonmoon
Lecturer
Department of Banking and Insurance
University of Dhaka
Submitted By
Md.Fakhrul Islam
ID: 19-087
19Th Batch
Department of Banking &
Insurance,
University of Dhaka

Department of Banking and Insurance

Submission date: February 29, 2016

1|Page
 Letter of Transmittal

March 08, 2017

Sabiha Farzana Moonmoon,
Lecturer,
Department of Banking and Insurance
Faculty of Business Studies
University of Dhaka

Subject: Submission of Internship Report on "Performance Evaluation of Foreign Exchange

operations : A study on Janata Bank Ltd.

Madam,

Here is the internship report on " Performance Evaluation of Foreign Exchange Operations :
that you asked me to submit on 1th march, 2017.

I have tried my best within my limitations to make this report presentable, information worthy.
I really enjoyed working on this topic, and I hope that you will consider all of my faults
generously. If any question arises regarding this report, I will be available for clarification. s

Yours Sincerely

Md. Fakhrul Islam

ID: 19-087
Department of Banking and Insurance
Faculty of Business Studies
University of Dhaka

Acknowledgement

By the Grace of Almighty Allah, I have completed my project paper successfully. Its a nice
experience to perform a project report on the topic " Foreign Exchange Performance of Janata
Bank Ltd.. Throughout the project period I have enjoyed knowing various things related to
Green Banking activities through the different banks and branches.

And for this, at first I would like to give thanks to my supervisor Sabiha Farzana Moonmoon,
mam,for his cordial and helpful guidance, monitoring and constant encouragement throughout
the course of this paper. His continued support and guidance has inspired me to overcome the
challenging jobs with full enthusiasm and complete the project paper successfully.

I also thankful to Department of Banking & Insurance for which I have got the chance to perform
a project paper on the topic.

I am grateful to my parents for their co-operation in my education.

 Declaration
I do hereby solemnly declare that the work presented in this Internship Report has been carried
out by me and has not been submitted to any other University for an academic qualification.

The work I have presented does not breach any existing copyright and no portion of this report
copied from any work done earlier for a degree or otherwise.

I further undertake to indemnity the Department against any loss or damage arising from
breach of the foregoing obligation.

__________________________
Signature of the Student
ID No.:19-087
Batch: 19th

___________________________
Date
 Supervisors certificate
This is to certify that the internship report on " Foreign Exchange Performance of Janata Bank
Ltd.: in the bona fide record at the report is done by Md.Fakhrul Islam as a partial fulfillment
of the requirement of Bachelor of Business Administration (BBA) degree from the Department
of Banking and Insurance, University of Dhaka.

The report has been prepared under my guidance and is a record of the bona fide work carried
out successfully.

__________________________
Signature of the supervisor

__________________________
Date
 Abstract
Banking is topic, practice, business or profession almost as old as the very existence of man, but
literarily it can be rooted deep back the days of the Renaissance (by the Florentine Bankers). It
has sprouted from the very primitive Stone-age banking, through the Victorian-age to the
technology-driven Google-age banking, encompassing automatic teller machines (ATMs), credit
and debit cards, correspondent and internet banking. But the foreign exchange services have
been a vicinity of concern not only to bankers but to all in the business.

The axle of this study is to have a clearer picture of how Janata Bank Ltd. (JBL) manages its
Foreign Exchange performance. An Introduction of JBL is given in the first part, its objectives,
scope, methodology, limitations, and the literature review of foreign exchange performance. In
this light, the study in its second part gives an Organization Overview. Third, fourth, fifth and
sixth part includes the theoretical review on foreign exchange, Export, Import, Remittance and
some data analysis of Janata Bank . In the last section that includes some Recommendation,
Findings and Conclusion.

Finally I have gone through my own assessment regarding their operation. I hope that Janata
Bank Ltd may more improve the operation in Bangladesh in future.
 1.1 Introduction

Bank can be named as iron cell of blood in a budgetary course of action of a country. Without bank a
budgetary structure can't survive. Shape without a doubt the beginning stage of cash related activity in
human advance bank has an astounding responsibility all things considered

Managing an account mainstay of economy-is guided by laws, principles, directions and practices. The
prime target of the managing an account industry all in all is to gather stores from people in general and
to put the same as credits and advances to organizations. The administration essential for financing of
import, fare, ensures and so forth is additionally the capacity of banks. In our nation, similar to others,
Banking organizations act 1991 stay agent to control and screen the capacity of banks as a team with
alternate laws. Since the saving money capacities are business in nature, numerous laws from the debatable
instrument act to common methodology code are basic in the everyday operations of the banks. For the
most part a bank includes three offices General Banking, Credit Department, and Foreign Exchange
Department. The division that is most imperative to a bank and to the enthusiasm of the nation is Foreign
Exchange Department

This report is a result of three months temporary job at Janata Bank Ltd. arranged as the fractional
prerequisite of BBA program of Faculty of Business Studies, University of Dhaka. The association
connection began on January third, 2016 and completed on 29th February, 2016. The point of the report
is Foreign Exchange Performance of Janata Bank Ltd. "
 1.2 Origin of the Report
Bachelor of Business Administration (BBA) Course requires a three months connection with an
association took after by a report doled out by the staff manager. I accepted the open door to do my
temporary job in Janata Bank Limited, Topkhana Bank Ltd Branch. Really this is a criticism which
division acknowledges from the understudies who participate in an association after the consummation of
hypothetical piece of the BBA program. My faculty supervisor Sabiha Farzana Moonmoon, Lecturer,
Faculty of Business Studies, University of Dhaka, instructed me to prepare a report on " Foreign
Exchange Performance of Janata Bank Ltd. of Bangladesh. as part of the fulfillment of internship
requirement.

1.3 Rationale of the study

foreign exchange is an important department of Janata Bank Ltd. , which manages import, send out and
outside settlements. It connects amongst shippers and exporters. This office is assuming an imperative
part in upgrading send out profit, which helps monetary development and thusly it helps for the financial
advancement. Then again, it additionally meets those merchandise and administration, which are most
demandable and not satisfactory in our nation. Remote trade operation is one of the critical elements of
the bank. It assumes an essential part in general economy of the nation. Bank gathers data from various
sources identifying with cost and income from outside trade operation. .. Through export, import, and
outside settlements Foreign Exchange division of the banks acquires their benefit. Banks is the middle
person of all fare, import, and settlement exercises. Remote Exchange Market permits monetary standards
to be traded to encourage worldwide exchange and money related exchanges. In the wake of passing a ton
of stages, present outside trade advertise has built up and performing to profit every one of the gatherings
fused here. There are fundamentally three players in the remote trade market of Bangladesh. Those are the
Bangladesh Bank, approved merchants, and clients. This paper examined with respect to the related issues
of outside trade exhibitions of Janata Bank Ltd
 1.4 Statement of the problem

Globalization of national economies has given a boost to international trade. Through foreign services
bank make their profits so this study discuss how Janata bank foreign exchange department performed
and bank would be profitability. The study seeks answers to the following questions:

How Foreign exchange department help to utilize more profit?

Does foreign exchange department performed effectively?

 1.5 Objective of the study

There are some objectives regarding to this study. These are-

To analyze the real Foreign Exchange performance of Bangladesh.

To find out critical problems of Foreign Exchange discipline of Bangladesh

1.6 SCOPE OF THE REPORT

This study would focus on the following areas of Janata Bank Limited.

Overview the current procedure of export & import and remittance management.

Opening LC and maintenance of other formalities of foreign exchange.

Organizational structures and responsibilities of management.

1.7 IMPORTANCE OF THE REPORT

Bangladesh is considered as a making country on the planet. The economy of this country has an
extraordinary arrangement left to go empower and there are heaps of augmentations for huge change. In
an economy like Bangladesh, Foreign Exchange can expect an important part to improve the financial
condition of the country. The banks accept the piece of a go between that can initiate the wealth sponsor
from surplus territories to give essential financing, to those divisions, which require a true blue continue
for sound change of the economy . This report is a total push to reflect an unmistakable thought with
respect to the strategies, activities, and execution of Bangladesh as to Foreign Exchange Business.

1.8 ANALYSIS TECHNIQUES

Both qualitative and quantitative techniques were connected for setting up this report. The information
were broke down and exhibited by Microsoft exceed expectations and shows rate, graphical introduction
and distinctive sorts of diagrams. Best exertion was given to dissect the numerical discoveries.
 1.9 REQUIRED DATA
I have mainly focused on theoretical data in preparing the report. Also I have used numerical portion as
the demand of the report. Analyzing foreign exchange management of a bank, both theoretical and
technical knowledge are necessary for execution. Then everything with accuracy, I have analyzed and
made conclusion.

1.10 Methodology:
The present study is of analytical and conceptual in nature based on the secondary data. The secondary
data has been collected from various newspapers, magazines, internet and commercial banks websites,
Bangladesh Bank websites and reviews etc. Additionally, different working papers, journals and articles
have been pursued enriching the literature of the study. To find out various green banking practices
nationally, the websites of the respective banks have been utilized and studied. An intensive desk
research has been undertaken to collect published data. The collected data are analyzed in the
perspective of progress and adequacy of green banking activities of Conventional Banks and Islamic
Banks of Bangladesh.

K21.11 LIMITATIONS
I have faced some limitations, when I was preparing this report which is mentioned below.

Time limitation: it was one of the main constraints that affected covering all aspects of the study.

Lack of Secondary Information: The import export data of Bangladesh is not much available over the
net. Secondary source of information was not sufficient for the completion of the report. Limitation of
the Scope: Much confidential information was not disclosed by respective personnel of the department
 Chapter 2:
Literature Review
 2.1 Literature Review

For this report, I led a database hunt of surveyed scholarly diary articles via hunting down terms like
"Foreign exchange services" "foreign exchange performance" and "Bank gainfulness" and some more.
This inquiry brought about an expansive determination of articles and distributions, which I contemplated
to figure out which to be incorporated into the audit for this paper. Notwithstanding the checked on diary
articles, I likewise utilized references from famous media sources and went by a few pertinent online sites
to give what might be seen as the prevalent standard point of view

As per The Economist, (Published by the International Business Times AU. Recovered: February 11,
2011) outside trade market is seemingly the world's biggest commercial center. It has a normal every day
turnover of US$1.9 trillion, with some different sources, for example, GO Market's Introduction to Foreign
Exchange assessing the market to have a normal day by day turnover in abundance of US$4 trillion. The
Bank for International Settlements says that normal day by day turnover in worldwide outside trade
markets is assessed at $3.98 trillion as of April 2010, which is a development of pretty much 20% over
the $3.21 trillion day by day volume around the same time in 2007. Primary concern is outside trade has
a tremendous turnover

Marrewijk, Charles Van, (October 2004) said that, The foreign exchange market is a type of trade for
the worldwide decentralized exchanging of global monetary standards. Budgetary revolves the world over
capacity as grapples of exchanging between wide scopes of various sorts of purchasers venders all day
and all night, except for ends of the week. The foreign exchange showcase helps global exchange and
speculation by empowering cash discussion. For instance, it allows a business in the United States to
import merchandise from the European Union part states particularly Euro zone individuals and pay Euros,
despite the fact that its pay is in USD. It likewise bolsters coordinate hypothesis in the estimation of
monetary forms, and the convey exchange, theory in light of the loan cost differential between two
monetary standards.

Chowdhury and Kashfia Ahmed (April, 2009) discussed that Banking system a vital part in the
monetary existence of the country. The wellbeing of the economy is firmly identified with the soundness
of its managing an account framework. In a creating nation like Bangladesh the Banking systeam overall
assume a key part in the advance of financial improvement. A bank indeed is much the same as a heart in
the monetary structure and the Capital gave by it resembles blood in it .For whatever length of time that
blood is available for use the organs will stay sound and solid. On the off chance that the blood is not
provided to any organ then that part would end up noticeably futile. Fare and Import office gave by the
banks functions as a motivation to the maker to expand the generation. The vast majority of the banks
carried on outside trade exchange. Regardless of whether they fare or import, it is through banks that cash
is exchanged starting with one nation then onto the next. For instance, bills of trade and letters of credit
are the general ways banks use to exchange cash.

Siddique and Islam (2001) pointed out that the Commercial Banks, overall, are performing admirably
and adding to the monetary improvement of the nation. The normal benefit of every Bangladeshi bank all
things considered was 0.09% amid 1980 to 1995 yet it will be expanded step by step which implies that a
benefit of TK 0.09 was earned by using resources of TK 100. In each part of benefit, managing an account
segment contributes the national economy and additionally to the individual association.

Jahangir, Shill and Haque (2007) stated that the conventional measure of benefit through stockholder's
value is very extraordinary in saving money industry from some other segment of business, where advance
to-store proportion fills in as a decent marker of banks' gainfulness as it delineates the status of advantage
risk administration of banks. In any case, banks' hazard is related with this benefit obligation
administration as well as identified with development opportunity. Smooth development guarantees
higher future comes back to holders and there falsehoods the benefit which implies current benefits as
well as future returns too. Thus, advertise size and market fixation file alongside come back to value and
advance to-store proportion snatch the consideration of dissecting the banks' benefit. The managing an
account industry of Bangladesh is a blended one including nationalized, private and remote business
banks. Numerous endeavors have been made to clarify the execution of these banks. Understanding the
execution of banks requires learning about the benefit and the connections between factors like market
size, bank's hazard and bank's market measure with gainfulness. To be sure, the execution assessment of
business banks is particularly essential today as a result of the wild rivalry. The saving money industry is
encountering real move throughout the previous two decades. It is getting to be plainly basic for banks to
persevere through the weight emerging from both inner and outside variables and turn out to be to be
beneficial. Until mid 1985, Bangladesh had a very stifled monetary part (Chowhdury, 2002). Banks and
other budgetary establishments were completely possessed by the legislature. In the early piece of 1980,
Bangladesh went into the IMF and World Bank conformity programs and the procedure of privatization
and progression picked up energy affected by the World Bank and the IMF. From that point forward the
keeping money industry of Bangladesh has turned into an appealing ground for both residential and remote
financial specialists to participate in the amusement. It is of most extreme significance that these players
substantiate themselves gainful. Other than the greater part of this there are no such examination has been
made among Janata Banks Outside Trade with Private Routine Bank's and in addition Islamic Banks
Remote Trade exercises. That is the reason I am setting up this report.

Chapter 3:
Organizational
Overview
 3.1 ORGANIZATIONAL PROFILE

HISTORICAL BACKGROUND OF THE ORGANIZATION

Janata Bank Limited is the second largest state owned commercial bank in Bangladesh. Immediately after
the liberation of Bangladesh in 1971, the erstwhile United Bank Limited and Union Bank Limited were
renamed as Janata Bank. The established of Janata Bank was happened under the Bangladesh Bank order
1972. It was incorporated as a public Limited Company on 21, May 07 vide certificate of incorporation
No-C66933(4425)07 in the early era of privatization. The Bank has taken over the business of Janata Bank
at a purchase consideration of Tk. 2593.90 million as a going concern through a vendor agreement signed
between the Ministry of Finance of the Peoples' Republic of Bangladesh and the Board of Directors on
behalf of Janata Bank Limited on 15th November 2007. The operation of Janata Bank Limited works
through 851 branches and including 4 overseas branches at United Arab Emirates and a subsidiary
company named Janata Exchange Company Srl in Italy. It is linked 1202 foreign correspondents all over
the world.

3.2 ORGANIZATION MISSION AND VISION

MISSION
As it is recognized as the leading commercial bank in the aspect of Bangladesh market and it is providing
retail and corporate banking services, it is trusted and respected as a partner in the social and economic
development program in our country and among our nation.

VISION:
Getting to be noticeably viable biggest business bank in the point of view of Bangladesh to bolster
financial improvement of the nation and helps proceed for getting to be plainly driving bank in South-
Asia.
3.3 SERVICES AREAS
 3.4 Branches

There are 904 branches of Janata Bank Limited in home and abroad. Among them 462 branches are
situated in urban areas including four foreign branches and 442 branches are in rural areas. And all
foreign branches are situated in United Arab Emirates.

Table: Branches of Janata Bank Limited

Division Town Rural zone Total
Dhaka North 48 8 56
Dhaka South 74 28 102
Chittagong 54 26 80
Rajshahi 54 93k 147
Sylhet 22 37 59
Khulna 44 43 87
Barisal 21 20 41
Rangpur 30 43 73
Mymensingh 33 42 75
Comilla 48 75 123
Faridpur 28 27 55
Local office & Janata
2 2
Bhaban Corp
Overseas 4 4
Total 462 442 904
 3.5 Overseas Branches:

Table: Foreign Branches of Janata Bank Limited

SL.No: City No of Branch Status

01. Abu Dhabi 01 Foreign

02. Al-Ain 01 Foreign

03. Sharjah 01 Foreign

04. Dubai 01 Foreign

 3.6 ORGANIZATIONAL STRUCTURE
MANAGEMENT ASPECT
Like each different business association, the principal obligation of the top administration is to settles on
all the real choices of Janata Bank. The sheets of executives are being at the highest level of authoritative
structure assumes a vital part in strategy plan and effective execution, however it is not an immediate
worry of the day-day operations of the bank. The obligation was assigned to the administration advisory
group. The board for the most part sets the destinations and arrangements of the bank.

The management consists of one chairman, eleven directors, one CEO & MD and one company secretary.

Mid and lower level representatives get the course and guideline from the Board of Directors about the
undertakings they need to meet. The CEO gives the rule to the supervisors and workers, however bears
the duty regarding deciding how errands and objectives are to be accomplished.
 Chapter 4:
Theoretical Overview

No nation is self - adequate in this world. Each nation is pretty much reliant on another for merchandise
or administrations. For the accompanying reasons remote trade is vital for any nation :
 International exchange gives chance of trade of products. .

National resources and assets of a nation can be used appropriately

Foreign Currency can be earned effectively

International exchange exchanges local creation all inclusive

4.1 Foreign Exchange Regulations

Local Regulations

Foreign exchange transactions are controlled by the following rules and regulation:

Foreign Exchange Regulation Act 1947

Bangladesh Bank issue foreign exchange circular time to time to control the import and remittance
business.

Ministry of commerce issues exports-Import Policy guidelines.

Bangladesh Bank published two volumes in 1996.

There is also an international court of arbitration to solve the international business disputes.

4.2 Import

Import means purchase of stock and ventures from the remote countries. Ordinarily customers, firms,
endeavors and Legislature of Bangladesh import items to meet their distinctive necessities. Along these
lines, more or less we can express that import is the surge of stock and undertakings got by fiscal

Import Regulations followed by the Bank

As indicated by Import and Fare control Act 1950 no individual can indent, import or admission any items
in Bangladesh beside in case of rejection issued by the lawmaking body of the society of Bangladesh. As
showed by Import and Fare Control Act, 1950, to be a shipper the individual should get the Import
Enlistment Endorsement (IRC) from the Workplace of Boss Controller of Import and Fare.

Stock from South Africa and Israel or items began from these countries are not importable. Import of stock
into Bangladesh is not permissible on the standard vessel of Taiwan, South Africa and Israel.
Methods of Importing
There exist various techniques of bringing in products from the remote nation. Products might be
specifically transported in from the outside fabricates or they might be foreign through the offering
specialists of the remote makers. Whoever does the capacity there are a few phases of bringing in, which
are as per the following:

Procuring Procuring
Placing Opening Delivery
Import Foreign
the Order L/C of Goods
Licencse Exchange
 4.3 Export

Export means to transfer goods from one place to another. The exporter must pay duty on goods exported.
The exporter should obtain registration from the office the chief controller of import & export, trade
license ERC, LCA to open export L/C.

Methods of Export

Receiving the order

Askin to Open L/C

Bookin gof Freight

Exchange Rate

Procurement of Goods

Getting the Goods Insured

Shipment of Goods

Preparing Export Papers

Securing Payments

Closing Transacton

Things Done in Export

In broader aspect the major responsibility that re performed here are

L/C Advising

Documents Collection

Documents negotiation
 Export financing Parties of the Export

L/C issuing bank

Importer

L/C advising bank

Exporter

Confirming bank

Negotiation bank

The paying / Reimbursing Bank

4.4 Foreign Remittance

Outside Remittance alludes to the exchange of store starting with one nation then onto the
next either through the workplace channel i.e. saving money channel, post office or the
casual channel. In Bangladesh still casual market is assuming a huge part. Be that as it may,
we should confine our discourse inside the official channel.

Outside Exchange profit are critical for the nation as important remote trade is included in
the exchange component. From the year 1990, money related progression has been begun
which is as yet going on. Because of progression, confinements on remote settlement move
toward becoming simplicity Bangladeshi Taka, is convertible for current sum exchanges on
March 24, 1994 with the view to accomplish better conversion standard administration
framework. Furthermore, from April 1994 Bangladesh Government has acknowledged the
status of Article VIII of International Monetary Fund.

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AD Branch
Approved Dealer Branches of the bank are the individuals who are allowed by the
Bangladesh Bank to bargain in Foreign Exchange Business subject to the satisfaction of
outside trade rules and directions of the nation.

Agency Arrangement
To encourage remote trade business all through the world, organization plan might be made
between neighborhood bank and outside bank. Be that as it may, if there should arise an
occurrence of office course of action bookkeeping relationship might be made

Drawing Arrangement
Drawing arrangement is made to facilitate remittance through concluding accounting
relationship between banks & corresponding bank or exchange house.

Functions Performed by Foreign Remittance

Issuance of TC, Cash Dollar/Pound.

Issuance of FDD, FTT & purchasing, payment of the same

Passport endorsement.

Encashment Certificate.

F/C Account opening & filing.

Maintenance of ledger of Cash Dollar, FC Deposit A/C & TC.

Preparation of all related statement, Voucher & posting

Preparation of Weekly, Monthly, Yearly Statement for Bangladesh Bank return

timely.

Attending all related correspondence to other Bank or Institution.

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 Chapter 5:
Data Analysis
&
Interpretation

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 5.1 Analysis & Interpretation

A relative comparison of Import, Export & Remittance is made for Janata Bank . The
information is shown in graph and also will have an interpretation.

5.2 Total Import & Growth Comparison

JB to PCB

Import of JB
Import Growth Rate of JB
250000 10%

200000 5%
7%
-5% -6%
150000 0%
2011 2012 2013 2014
100000
183740 197280 188280 -5%
176670
144560
50000 -10% -18%

0 -15%
2010 2011 2012 2013 2014
-20%
Janta Bank
Janta Bank

Interpretation

From the graph we can see that in every year from 2010 to 2014 total import of Janata Bans
Ltd is in decreasing trend. Which is positive sign for our Economy. The growth chart shows
the same result.

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 5.3 Total Export & Growth Comparison
JB to PCB

Export of JB
180000
160000
140000
120000
100000
80000 153750 156520 153250 154080
60000
118510
40000
20000
0
2010 2011 2012 2013 2014

Janta Bank

Export growth rate of JB

35%
30%
25%
20%
15% 30%
10%
5%
0% 2% 1%
-2%
2011 2012 2013 2014
-5%

Janta Bank

Interpretation

In Case of Export, The amount of export of Janata Bank is also has a good trend though in
2013 the amount of export was decreased but again in 2014 the amount of export is positive.

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 5.4 Total Remittance & Growth Comparison
JB to PCBsss

Foreign Remittance of JB
120000

100000

80000

60000
100090 103980 106680
40000
72280
52640
20000

0
2010 2011 2012 2013 2014

Janta Bank

Growth Rate of JB
45%
40%
35%
30%
25%
20% 37% 38%
15%
10%
5%
4% 3%
0%
2011 2012 2013 2014

Janta Bank

Interpretation

The remittance of JB , the amount is very much greater in case of JB. Especially in 2014
the amount is really huge. So the reflection is seen in the growth rate until 2013.

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 Chapter 6:
Major Findings
& Summary

26 | P a g e
 6.1 Major Findings
Foreign Exchange Performance of Bangladesh
Bangladeshs Foreign Exchange consists of three things. Those are Export, Import &
Remittance. Foreign exchange is very important for any country and Bangladesh is no
different to that. The export, import and remittance contribute to increase the total reserve
and GDP . From the above discussion we will be able to find the real foreign exchange
performance of Bangladesh.

Export

By exporting goods and products Bangladesh earns a lot of foreign currency. Bangladesh
has a very good future in ready-made garment industry. From the above discussion we have
come to know that the overall total export total exports in FY15 had a strong growth over
FY14. Aggregate exports increased by 1 1.7 percent in FY15 to USD 30176.8 million from
USD 27027.4 million in FY14. That indicates that Bangladesh has a very promising future
in case of export & it should be taken care of.

Import

The less the import the more the foreign reserve would be. But for a single country it is not
possible to produce everything. So it has to import some goods that havent produce in our
country or has a shortage in production. Import payments increased to USD 36571.0 million
in FY15 from USD 33576.0 million in FY14 registering a growth of 8.9 percent. Except
crude petroleum and fertilizer, import bills of all other imports increased in FY15 compared
to FY14. Import of food grain and other food items significantly grew by 101.8 percent and
31.0 percent respectively. This was mainly due to rise in wheat import. The import bill for
food grains stood at USD 1465 million in FY15 compared to USD 726 million in FY14.
Consumer and intermediate goods import increased by 11.4 percent to USD 18602.0 million
in FY15 from USD 16694.0 million in FY14. Imports by EPZ increased by 18.8 percent to
USD 2975.0 million in FY15 compared to USD 2505.0 million in FY14

27 | P a g e
.

So the import is also increasing relatively to previous years. We have also seen that in the
finding part through charts. As the import is rising, Banks will have more scope of earning
through different services related to import. It will help a bank to have more profit.

Foreign Remittance
Foreign remittance is one of the main source of reserve of the foreign currency. The more
the foreign currency a country has the more the value of local currency increases.

The gross foreign exchange reserves held by Bangladesh Bank comprises holdings of gold
and foreign exchange, the reserve position with the IMF and holding of Special Drawing
Rights (SDR). The gross foreign exchange reserves of Bangladesh Bank reached at USD
21508 million at the end of FY15, which is 40.4 percent higher than USD 15315 million at
the end of FY14. The gross foreign exchange reserve is sufficient to meet more than seven
months import bills. In order to strengthening the long term stability of the country's
reserves and diversifying the external asset portfolios, BB invested foreign exchange
reserves in sovereign/ supranational/ highly reputed corporate bonds, Treasury Bills of US
Government and in short term deposit with highly reputed commercial banks.

Critical Problems of Foreign Exchange of Bangladesh

As a developing country, here there is a great opportunity to expand a business easily.
Human resources cost are also cheap. On the other hand people have strong faith to the
banking sector. But this sector is not free from problems. Some challenges of the banking
sector are:

Global economic crisis which decreases the consumptions of goods and also the
exports.

Export volume has dropped due to lack of global demand.

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 Lack of diversification, especially for export sector.

Very high dependency on Textile and RMG Sectors to export.

Slow recycling of investment of commodity in commercial sectors.

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 Chapter 7:
Recommendation &
Conclusion

30 | P a g e
 7.1 Recommendation

Bank should open more Nostro accounts for efficient processing of L/C.

Charges in foreign exchange incorporate SWIFT charges, Document Handling

Charges, Stamps Charges and additionally VAT. On the off chance that such charges
could be decreased, It will draw in more clients

If the Bank diminishes the rate of margin then maybe they can draw in more clients.
Right now, Companies with great association with the banks just advantages with
lower margin level over others

In request to report Bangladesh bank about TC, DD and other outside settlement
exchanges, the essential archives ought to be gathered from clients on time.

The bank may introduce some promotional program to increase export. If bank give
more emphasis to export parties they will be influenced.

The bank should follow the UCPDC (Uniform Customs and Practices for
Documentary Credit) rules very strictly to avoid the risks involved in Foreign Trade
Business.

The situation of International Business is very dynamic. More current patterns are
occurring time to time. This may make a pressure between exporters-shippers and
the financiers. To lessen perplexity and making long haul gainful client relationship
the Bank ought to mastermind courses, workshops, dialog and so on this will help
the Bank to keep running in experimental mode.

Political instability and corruption is an important barrier of smooth operation of

import and export

31 | P a g e
 7.2 CONCLUSION

Bank is a very important and vital for economic development in mobilizing capital
and other resources. JB is also contributing to the advancement of the socioeconomic
condition of the country. To keep pace with the current market and demand, JB is
following several strategies and taking new initiatives, offering new products and
services to the customers. The bank should maintain well-structured communication
from upper level to lower level. JB have a strong position in the competitive market.
It is among one of the fastest growing Bank.

As the economy of Bangladesh is increasing so is the foreign trade and JB like

always have played its role in making sure that things go smoothly. The bank is
doing its best to provide better Import, Export and Remittance services to the
customers.

Export, Import and Remittance are all showing positive trends even after the global
challenges that we are facing today. But the foreign trade handled by bank decreased
in recent year, this may be because of opening of new branches in different business
centers and the instability in the economy of the world.

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