CSE Forex launch venture signs deal with ABG Bashundhara

Chittagong Stock Exchange (CSE) is going to launch the first commodity exchange in the country. Bashundhara Group has taken bold steps to develop Bangladesh. The top industrial group has taken the country's economy one step further by officially starting its journey as a strategic investor of Chittagong Stock Exchange (CSE).

❝ Bashundhara Group always takes bold initiatives. The initiative they take is followed by others. They have also made a thoughtful decision to join CSE. In this case, Bashundhara will prove their decision right by being successful ❞

The introduction of forex trading in the Bangladesh capital market has the potential to increase market size and reputation both domestically and internationally. However, it is worth noting that currently, forex trading is banned in Bangladesh as per the Bangladesh Bank guidelines.

If this platform is introduced, it could benefit individuals and entities involved in foreign exchange transactions while operating within the legal framework.

The aim is to create a platform for currency derivatives, where currencies of different countries can be bought, sold and exchanged. The initiative aims to regulate the forex market, reducing the influence of potentially illegal or unsanctioned forex trading syndicates.

The introduction of forex trading in neighboring countries such as India and Pakistan has led to significant activity in derivatives markets and contributed to their capital market turnover.

The CSE has already got a license to open the derivatives market, but legal amendments may be needed to fully support the introduction of currency derivatives under the Securities and Exchange Ordinance, 1969.

Despite Bangladesh Bank's directive to refrain from dealing in virtual assets and currencies, CSE is trying to launch forex trading under the derivatives market with the help of ABG Limited. Potential benefits include better control over currency exchange rates and the promotion of a Bangladesh capital market.

The regulatory authorities are considering the proposal, and if it is introduced, it could have a positive impact on the financial landscape of the country.

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