Bangladesh Foreign Exchange Dealer's Association (BAFEDA) was formed in a bankers' meeting held on August 12, 1993 in the Board Room of Rupali Bank Ltd. to help the development of an orderly inter-bank foreign exchange market in Bangladesh. It's major activities include framing of rules governing the conduct of inter-bank foreign exchange business among banks vis-a-vis public and liaison with Bangladesh Bank for reforms and development of forex market. Presently some of the functions are as follows:
• Guidelines for inter-bank foreign exchange dealings.
• Training of Bank Personnel in the areas of Foreign Exchange Business.
• Advising/Assisting member banks in settling issues/matters in their dealings.
• Represent member banks on Government/Bangladesh Bank/Other Bodies.
• Calculation and announcement of daily inter-bank weighted average/average rates to member banks.
• Publishing Dhaka Inter-bank Offered Rate (DIBOR)
Due to continuing integration of the global financial markets and increased pace of de-regulation, the role of self-regulatory organizations like BAFEDA has also transformed. In such an environment, BAFEDA plays a catalytic role for smooth functioning of the markets through closer co-ordination with the Bangladesh Bank and various market participants. BAFEDA also maximizes the benefits derived from synergies of member banks through innovation in areas like new customized products, bench marking against international standards on accounting, market practices, risk management systems, etc.