BB (Bangladesh Bank) will introduce an automated trading platform for the inter-bank money market within the third week of March to facilitate movement of liquidity in the financial sector, the Financial Express reports.
Referred to as EDSMoney (Electronic Dealing System for lnterbank Money Market), the platform will enable conventional banks and NBFIs (non-banking financial institutions) to trade different inter-bank money market products including overnight call money, short notice deposits and term deposits.
Currently, banks and NBFIs use an OTC system to deal in inter-bank money market products.
BB General Manager Rup Ratan Pine said EDSMoney will facilitate more efficient movements of liquidity among the banks and NBFIs as well as help implement the central bank’s monetary policy.
The decision to launch EDSMoney was taken on Monday (15 February) at a meeting BB officials and banks’ treasury heads.
According to a roadmap unveiled at the meeting, all conventional scheduled banks and NBFIs are allowed to use the platform on a trial basis from 16 February onwards for five working days.
Once parallel testing, software modification and security testing is complete, EDSMoney will go live In the third week of March, the roadmap said.
BB will meet with the treasury heads of conventional NBFIs next Tuesday (23 February) to discuss the functions of EDSMoney.
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