Dhaka, Sept. 23 -- Bangladesh Bank has issued new directives allowing foreign trading partner banks to open and maintain "Taka Vostro Accounts" without any initial deposit, aiming to expand the scope of using local currency in international trade.

The initiative will enable the settlement of import and export trade transactions in Bangladeshi Taka, reducing reliance on foreign currencies.

The Foreign Exchange Policy Department-1 of Bangladesh Bank issued a circular in this regard on Wednesday. The circular was signed by Dr. Md. Abu Bakar Siddique, Director (Current Charge) of the FEPD.

International commercial transaction funds can be deposited and settled in Bangladeshi Taka through these accounts maintained with local banks, creating...