Cenbank suspends 7 moneychangers' licences for overpricing dollars

Highlights:

• The dollar price in the curb market is currently Tk117 to Tk118, while the rate fixed by the authorities is Tk112.
• Banks are reportedly selling dollars at Tk111.50 each, but curb market traders alleged that banks are manipulating loopholes in the system and actually selling dollar at Tk115.36 to Tk116
• NSI, BFIU yesterday seized foreign currencies worth around Tk2cr from 4 money exchangers in the capital

The central bank has suspended seven moneychangers' licences for selling dollars in the curb market at a price higher than the fixed rate.

The Bangladesh Bank has also sought explanations from ten other moneychangers for different irregularities, said sources.

Md Mezbaul Haque, executive director and spokesperson for the Bangladesh Bank, told TBS, "Last week, the central bank monitored the market to check the dollar price charged by a number of moneychangers. We found that they sell dollars at a higher rate than that set by their association."

He also said the central bank will continue monitoring the market and take action against those institutions that will sell dollars at excessive prices to create instability in the market.

According to the traders, the dollar price in the curb market is currently Tk117 to Tk118, while the rate fixed by the authorities is Tk112.

The list of moneychangers whose licences have been suspended includes – York Money Exchange, Zaman Money Changing House, Jenny Money Exchange, Standard Money Exchange, Mercy Money Exchange, JB Money Exchange, and Bengal Money Exchange.

The central bank has also sought explanations from 10 other moneychangers for their involvement in various irregularities. The list includes New Prime Money Changer, Uttara Money Changer, Misa Money Exchange, Yamuna Money Exchange, Pioneer Money Exchange, Buriganga Money Exchange, Scuff Money Changer, Hazrat Khwaja Baba Mudra Binimoy Kendra, Glory Money Exchange, and Matrik Money Changer.

According to a decision taken in a meeting between the central bank and the Money Changers Association of Bangladesh, the money changers can maintain a maximum difference of Tk1 compared to the commercial banks in buying and selling dollars. Currently, banks are selling dollars at Tk111.50 each.

NSI, BFI seize currencies worth Tk2cr from 4 money exchangers

The National Security Intelligence (NSI) and the Bangladesh Financial Intelligence Unit (BFIU) raided four money exchanges at Dainik Bangla Mor and Gulshan areas in the capital yesterday. They recovered US and Canadian currencies worth around Tk2 crore, Tk38 lakh cash, and arrested a number of people involved in hundi business.

The law enforcers raided Nihon Money Exchange in Dainik Bangla Mor, and recovered $1,70,000, Can$30,000, and currencies of various other countries.

They also raided Sub Money Exchange and Lord's Money Exchange in Gulshan-1 and Metro Money Exchange in Gulshan-2.

The authorities found that Lord's Money Exchange was buying and selling dollars at prices higher than the fixed rates. The NSI and BFIU officials warned the owners of the company to conduct business in accordance with the rules.

As per the decision of the Association of Bankers, Bangladesh and the Bangladesh Foreign Exchange Dealers' Association, the dollar rates are Tk109 for remittance, Tk108.50 for export bills, and Tk109.50 for BC selling (Bill Selling).

Money changers said there is a big loophole in the banks' dollar rate. They say the rate is Tk111.50 per dollar but actually it is over Tk115, because the banks are taking an additional Tk3.34 per dollar as 3% service charge. They are further deducting Tk0.52 as 15% VAT on service charges.

They also said many banks are charging endorsement fees. All in all, buying dollars from the bank currently costs around Tk115.36 to Tk116. Due to this, people are leaning towards money changers to buy and sell dollars.