Nine banks get BB notice over overpriced dollars

Nine banks get BB notice over overpriced dollars

Ittefaq Report

Dutch-Bangla Bank, Dhaka Bank, Trust Bank, BASIC Bank, Mutual Trust Bank, City Bank, Prime Bank, NCC Bank and Exim Bank have been penalized by the Bangladesh Bank for selling dollars to importers at higher prices.

The central bank on Sunday said those banks have reported less than what they have charged importers for dollars. Central bank regulators now want explanation why the private banks would not be penalized for hiding information.

BB has given the banks a three-day deadline to respond to the notice and if they do not respond, they will be sued under existing law.

Central bank spokesperson Serajul Islam told reporters that the banks have charged importers additional one taka than the interbank rate.

“The banks have taken advantage of the high demand for dollars in the market. The rates at which the banks have sold the dollars to the importers have been concealed from the central bank,” he added.

The BB instructions say that banks are supposed to sell one dollar at Tk 83.85 at the import level, but the nine banks sold dollars to importers at rates ranging from Tk 84.6 to Tk 84.95.

Central bank officials said the demand for dollars rose as imports surpassed exports and inward remittances.

In November last year, Bangladesh Bank served notice on 20 banks, citing the same complaints. Some banks were fined because they failed to provide clear answers.

Meanwhile, Bangladesh Bank has continued to sell dollars to various banks as demand for the greenback rose.

The central bank has injected $2.31 billion into the market so far in the current fiscal year.

The central bank sells dollars to the banks to keep the market stable after the demand for the US currency increases. When the supply increases, it buys back the currency from the market.