Cenbank asks why 10 banks won't be punished for dollar rates
A special inspection of 13 banks concluded recently found irregularities in buying and selling dollars. A member of the inspection team told TBS on condition of anonymity that some banks bought dollars at Tk114 and sold them at Tk120.
The central bank has asked 10 banks why disciplinary action should not be taken against them for buying and selling dollars at prices higher than the rates fixed by the authorities.
The Bangladesh Bank sent letters to the banks in this regard last week, said sources.
On condition of anonymity, a senior official of the central bank told TBS that they can punish the banks for the irregularities found in their dollar transactions. Still the central bank has asked why they should not be punished so that they cannot come up with any more excuses after the imposition of penalties.
Keep updated, follow The Business Standard's Google news channel
Central Bank Spokesperson Mezbaul Haque confirmed that letters seeking explanations were sent to 10 banks, but he did not reveal their names.
He said if the allegations against the banks are proved clearly, actions will be taken against them as per the Bank Company Act.
A special inspection of 13 banks concluded recently found irregularities in buying and selling dollars. A member of the inspection team told TBS on condition of anonymity that some banks bought dollars at Tk114 and sold them at Tk120.
As per the rate fixed by the Association of Bankers, Bangladesh and the Bangladesh Foreign Exchange Dealers Association, banks can currently buy remittance and export bills at Tk109.50 per dollar, and sell it at Tk110.50 per dollar.
Fines were levied on six banks earlier this year after they were found to have transacting dollars at prices higher than the fixed rates. However, it did not come to the media as the central bank and the concerned commercial banks maintained confidentiality.
On 16 August, the central bank governor held a bankers' meeting, where the managing director of a government bank mentioned the fine levied on six banks, according to a document obtained by The Business Standard.
Last July, the central bank started an investigation against 13 banks after receiving allegations of dollar rate manipulation. Those banks have submitted explanations to the central bank, which was not satisfied with their statements.
In August 2022, the central bank removed the treasury department heads of six domestic and foreign banks for buying and selling dollars at an excessive rate. Those banks were the Brac Bank, the City Bank, the Prime Bank, the Dutch Bangla Bank, the South East Bank, and the Standard Chartered Bank, according to media reports.
At that time, the Bangladesh Bank sought an explanation regarding the matter from the banks. However, due to legal restrictions, the central bank allowed the reinstatement of treasury chiefs after one month without taking action against them.
