Dhaka, Sept. 21 -- Bangladesh Bank has allowed offshore banking units of commercial banks to buy and sell foreign currency and conduct cross-currency swaps, widening their access to dollars for domestic banking operations.

The central bank announced the move in a notification on Monday, saying the new facility was intended to make foreign-currency fund management "more efficient and cost-effective".

"Offshore banking units have been allowed to directly buy and sell foreign currency and conduct cross-currency swap transactions," the circular said.

Bangladesh Bank expects the decision to increase access to foreign-currency financing for trade and business at more competitive costs.

The facility has also been introduced to bring the coun...