NECESSITY OF PRACTICING FOREIGN EXCHANGE FORWARD CONTRACT IN BANGLADESH

Authors

Abstract

The study intends to explore the reasons necessitating the inception of practicing foreign exchange forward in Bangladesh, one of the emerging economies of South Asia. With the country’s increased involvement in international trade and commerce and extensive investment in infrastructural facilities exposure to foreign exchange risk is also growing. But unfortunately, no mechanism is there in Bangladesh that can give the individual or institutional investors protection against exchange rate risk while dealing with foreign currencies regularly. As such, it is an attempt to provide a qualitative judgment regarding the prospects of initiating practice of foreign exchange forward contract in Bangladesh. The study has been conducted based primarily on secondary data and the majority of data has been collected from different books, reports, research articles, web sites and other internet based resources. It finds that if the country introduces practice of foreign exchange forward not only the individuals receiving foreign remittances and firms that deal with the foreign currency would be benefited but also the government would be benefited.

Author Biography

Tasnim Uddin Chowdhury, Premier University

Department of Business Administration, Assistant Professor

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Published

2021-08-03

How to Cite

Chowdhury, T. U. (2021). NECESSITY OF PRACTICING FOREIGN EXCHANGE FORWARD CONTRACT IN BANGLADESH. AU EJournal of Interdisciplinary Research (ISSN: 2408-1906), 6(2), 26-33. Retrieved from http://www.assumptionjournal.au.edu/index.php/eJIR/article/view/5322