Re ea anny INSTITUTE OF BANKERS, BANGLADE! nking Professional Examination, 2023 Arn reign Exchange (FFE) Ssiyetewte: 2 ToT 3 | Vimo—3 hours Full marks—100 Pass marks—45 INB. The figures in the right margin indicate full marks. Answer any four questions from group-A and one from group-B.] Group A arts 4x5=20 7 Mite short noes on any five ofthe following: fo) Billof Exchange (6) Lodgment of Import Bill g -) Transport Documents in LC (fod) Financial Messaging System ) Standby Letter of Credit (po, Balance of Payments (g) UPAS LIC ~ 2. Distinguish between any four of the following: 5x4=20 (@) OD Sight and BC Selling Rates () Spot and Forward Exchange Rates Fe (©) Nostro and Vostro Accounts @ LIMand LTR » (@) Pre-Shipment Finance and Post Import Finance @ Currency Appreciation and Depreciation (@) Describe the settlement methods for export and import: 4x3=12 @ Letter of Credit ) (ii) Sales Contract or Open Account (iii) Advance Payment not only the method of import. Describe the other options allowed in the Import 8 @) Wis Policy Order 2021—2024, (a) Describe the incentives and facilities offered to the Non-Resident Bangladeshis (NRBs) 5 against their homebound remittance through banking channels. : ) 1 (8) How do you motivate your bank clients in favour of a formal or banking channel instead of a risky “hundi’ channel for receiving remittance? (©) Inward wage remittance is an important factor to keep BOP favourable and exchange rate stable, Explain it in your own words, 5. (a) What is LIBOR? Does it exist now? 4 (6) Discuss the following benchmark interest rates widely used as reference rate for cross- 8 border lending: @ SOFR (ii), SONIA ‘ (ii) TONA (iv) EURIBOR (©) What is offshore banking and how does it work? 8 /% (@) Change in the USA central bank's policy rate usually affects the global economy, ig including their own economy. Analyze the possible impact and consequences of the upward trend in US interest rates on the USD-BDT exchange rate. Will the collapse of the US Silicon Valley Bank (SVB) have any impact on Bangladesh economy? (8) Analyze the impact of Ukraine War international trade and its consequences on exports 10 of Bangladesh. [Please turn over Scanned with CamScanner7. (@) Define under-invoicing and over-invoicing in international trade. - A (8) Why is price verification or justification important to prevent under-invoicing and over- invoicing? Describe methods and {echniques for price verification during the processing ‘of import LC. 4 5 (©) Wan economy faces supply shortage of foreign exchange, the banking regulator should 7 closely monitor the price verification process of LC opening banks. As a banker, analyze the issue in your own words. 8. Asa Head of Foreign Trade Division of your bank, how would you deal with the following 5x4=20 ' situation under UCP-6 (a) As per LC terms, 08 March 2023 was the deadline of presentation of documents. Your customer has presented the documents on 09 March 2023. Note, that 08 March 2023 was a public holiday. Thus, all banks were closed on that day in Bangladesh. () Your customer has presented export documents for negotiation under irrevocable LC of UCP-600. Transport document shows that the shipment has been made late after the due date stipulated in export LC. (©) Suppose your bank is an advising bank of an LC. The LC issuing bank has requested you to add confirmation by your bank to the LC before advising it to the beneficiary. But the issuing bank has no credit line with your bank. 5 (@ After scrutinizing shipping documents, you have found that there is a mismatch of the . HS Code of goods between LC and Bill of Lading. GroupB . Your exporter wants to sell a 120-day usance bill of EUR 65,000.00 to your bank. Calculate 20 the buying exchange rate of your bank. How much does your bank have to pay to the exporter? Please use the following information: (@) Inter-bank exchange rate: i , EUR 1= USD 1.071S—1.0820 USD 1 = BDT 106.1010—107.7590 we (6) Transit period 10 days po * ects (c) Profit margin BDT 0.10 per EUR (@) Your bank’s overhead charge 0.0625% | ns (@) Interest rate 6% per annum 7 (Assume 360 days in a year. Please show your rough calculation) 10, Based on the following information, please calculate the buying and selling raté of Bangladesh Taka per Japanese Yen when inter-bank market exchange rate was, .) , USD I =JPY 1303010—132.1280 | : USD 1 = BDT 106.1010—107.7590, . y ‘Also calculate the amount of BDT to be paid by your bank for buying 2,00 million Japanese Yen. (N.B. Please show your rough calculation] — Lear rr rn ee tea I 1 FRED RCS CHEAT UTD eRe! 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