BB directs banks to buy remittance dollars at Tk123 max
Several senior bank officials say a few banks are still offering rates as high as Tk124 despite the central bank's directive
The Bangladesh Bank (BB) has directed banks to buy remittance dollars at a maximum rate of Tk123.
The instruction came during a meeting of the central bank with 13 banks today (24 December), a day after the central bank instructed senior officials of most banks to collect remittances at the same rate.
The dollar rate decreased by Tk3-4 within a day of the central bank's call yesterday (23 December). By today, most banks had collected remittance dollars at the Tk123 rate.
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However, despite the central bank's directive, several senior bank officials have reported that a few banks are still offering rates as high as Tk124.
The dollar market became volatile at the start of December after a relatively stable market for about four months.
Amid this, the dollar-taka exchange rate set new records twice within two business days, reaching the highest rate in history.
Banks had to pay a maximum of Tk127.7 to buy remittance dollars last Thursday (19 December).
In response to buying remittance dollars at an unusual rate from foreign exchange houses that evening, Bangladesh Bank sent a letter to the managing directors of 13 banks asking why no punitive action would be taken against the concerned bank officials.
These banks were called to a meeting today (24 December).
The meeting was attended by representatives of commercial banks and senior officials, including two deputy governors of the central bank.
During the meeting, banks were asked to explain why they bought remittances at higher rates. In response, banks cited pressure from overdue payments as the main reason.
They also explained that facing approaching payment deadlines, they could not collect remittance dollars at lower rates and had to buy them at higher rates.
"We are being forced to buy remittance dollars at higher rates because of aggregator money exchanges. We have informed the central bank about this, and they have assured us that they are considering the issue of aggregators," said a senior official from one of the commercial banks at the meeting.
"We have also raised the issue of a lack of information about the dollar market among bankers. Due to the lack of accurate information, prices often rise. The central bank has said it will consider this as well," he added.
Several reports published by The Business Standard last week highlighted the increasing instability in the dollar market.
Bangladesh Bank Governor Ahsan H Mansur said last Thursday, "Some immature traders in the banking sector have destabilised the market. They are misusing the opportunity to open the dollar market.
"Those who have destabilised the market certainly need to be punished," he added.
