Managing foreign currency reserves
Another central bank function is the management of foreign exchange reserves. Depending on their reserves, central banks may decide to buy foreign currency or sell the local currency in order to influence its value.
What is foreign exchange regulation (fer)?
- Foreign Exchange Regulation (FER) Act, 1947 (Act No. VII of 1947) enacted on 11th March, 1947 in the then British India provides the legal basis for regulating certain payments, dealings in foreign exchange and securities and the import and export of currency and bullion. This Act was first adapted in Pakistan and then in Bangladesh.
What is the Foreign Exchange Act?
- (As modified upto 30th April, 2002) An Act to regulate certain payments, dealings in foreign exchange and securities and the import and export of currency and bullion.
What is Foreign Exchange Regulation Act of Bangladesh?
- WHEREASit is expedient in the economic and financial interests of Bangladesh to provide for the regulation of certain payments, dealings in foreign exchange and securities and the import and export of currency and bullion; It is hereby enacted as follows : 1. (1) This Act may be called the Foreign Exchange Regulation Act, 1947.
What is the meaning of foreign exchange?
- The term foreign exchange as defined under Section 2 of the FER Act, includes cheques, drafts, travellers' cheques, letters of credit, bills of exchange and promissory notes expressed or drawn in foreign currency, or in Bangladesh currency but payable in foreign currency. 9.
A central bank is responsible for fixing the price of its native currency on forex. This is the exchange rate regime by which its currency will trade in the open market. Exchange rate regimes are divided into floating, fixed and pegged types.