The Chittagong Stock Exchange (CSE) today signed a memorandum of understanding with India’s Multi Commodity Exchange (MCX) to launch Bangladesh’s first-ever commodity exchange.
A commodities exchange is a legal entity that determines and enforces rules and procedures for trading standardized commodity contracts and related investment products.
PS Reddy, managing director and chief executive officer of MCX, and Ghulam Faruqe, acting managing director of CSE, signed the deal at Radisson Blu Dhaka Water Garden.
At the event, Commerce Minister Tipu Munshi said he realized the importance of the commodities exchange as the recent price level fluctuations make him unhappy.
“The solution was in the commodity exchange. So, It’s a timely decision,” he said, adding that it is a big step in the development journey of Bangladesh.
In 2003, MCX became one of the first exchanges to open in India. It provides a platform for price discovery and risk management across varied segments, including industrial metals, energy and agricultural commodities.
Rural farmers will get a fair price with the exchange, which will help the agricultural sector to be developed, CSE Chairman Asif Ibrahim said.