Foreign Exchange Procedure & Performance
of Jamuna Bank Limited
Jamuna Bank Limited, a third generation (A Category) private commercial bank has been able to build up significant corporate image in the banking sector due to sincere service and discipline of the employees of the bank towards gaining confidence of their customers. Jamuna Bank Limited is a highly capitalized new generation Bank started its operation with an Authorized Capital of TK.1600.00 million which is amended by TK. 4000.00 million ,as of
December 2009 Paid-up Capital of the bank raised to TK 1313.27 million.
Foreign exchange is the means and methods by which rights to wealth in a country’s currency are converted into rights to wealth in another country’s
currency. Foreign Exchange Department (FED) is the international department Bangladesh Bank issues license to scheduled banks to deal with foreign
L/C (Letter of Credit) is a very important issue of foreign exchange management because without L/C import and export cannot be possible. Importer and
Exporter do not know each other. For this reason settlement of payment cannot be possible without the arrangement of Bank particularly in foreign trade.
Therefore import/Export also cannot be possible if no L/C can be made through Bank. So L/C is a very important issue in foreign trade.
The total import business handled by the Jamuna Bank in 2010 was Tk. 30311.71 million compared to Tk. 22191.84 million in the preceding year registering a
rise of Tk. 8119.87 million being 36.59 percent.
When a manufacturer/factory in Bangladesh received order from the foreign buyer for shipment/export of finished goods to the foreign buyer, then the
manufacturer received an order from abroad in the form of Irrevocable Letter of Credit which is called Export L/C.It is also known as Master/Mother L/C.The
Bank handled export business worth Tk. 18617.43 million in the year under report. In 2009 total export business handled by the Bank was Tk. 13990.33
Foreign Remittance means money remitted in foreign currency. Foreign Remittance represents remittances in foreign currency that are received in and madeout abroad. Purchase of foreign currencies and bills constitute Inward foreign remittance and sale of which constitutes outward foreign remittance .The
foreign remittances are affected either through the respective bank’s foreign branches or correspondents. The term inward remittance includes not only
purchase of Foreign Currency by TT.MT. Draft etc. but also purchase of Bills, purchase of Traveler’s Cheque.
Foreign currency being made out abroad may be termed as foreign outward remittance. That means, remittance in foreign currency that goes out abroad is
called foreign outward remittance.
Though there was an unfavorable business environment due to political turmoil throughout the year JBL was in constant efforts to explore different areas of
Jamuna Bank Limited has so far established relationship with most leading international banks in 107 countries through 715 correspondents to cover
all-important financial centers of the world. The Bank endeavors to increase its network of correspondent relationship with more overseas banks, financial
institutions to cater to the needs of customers globally. Drawing arrangements with overseas exchange houses have already been established for bringing in
home remittances through banking channel. Efforts are underway to expand correspondent relationship further to facilitate the bank’s growing foreign trade transactions.