Internship Report On An Analysis of Foreign Exchange Operations – A Case Study of Dhaka Bank

Abstract

This is a final report of a three-month practical internship program in Dhaka Bank PLC. The internship was conducted at the Dhaka bank Banani-11 Branch and was purely concerned with the overall operations of the Foreign Exchange Foreign Exchange Division. This division plays a vital role in contribution of the bank to international trade, handling of foreign currency risks, and international remittances, all of them being vital to the national economy. The rationale of the study is to have a thorough understanding of the practical use of foreign exchange policies and procedures. This analysis was created using both primary and secondary data, which were acquired by direct observation and structured interviewing with bank staff, respectively, and secondary data, sourced in internal bank manuals and regulatory circulars, respectively. The format of this report is made in a logical manner to include all aspects of the FOREIGN EXCHANGE activities of the bank. The former involves a background section that explains the background, objectives, the scope and methodology of the study. In the second section, there is a detailed overview of Dhaka Bank PLC, its history, vision, mission, core values, the products it offers and its extensive network of operation. The third and fourth part is the primary body of the project, which focuses on the Foreign Exchange Division. This specialized emphasis encompasses the information of the Trade Finance Desk (import and export processing, Letter of credit (L/C) life cycle, bills and documents management under the UCP 600), the Treasury Function (interbank currency dealing, spot and forward contract management) and the strict compliance regime (e.g., AntiMoney laundering/Counter-terrorism Financing-AML/CFT) covering these transactions. After this in-depth examination, the report comes up with significant issues, including the bottlenecks in the processing of documents and the possibility of exposure to currency risks. These are the identified problems that were identified during the internship and are covered in the Findings chapter. Lastly, Recommendations are also advanced to facilitate the effectiveness of trade documents, effective risk management procedures adopted by the bank, and the effectiveness of service delivery to clients at the Foreign Exchange Department of Dhaka Bank PLC.