Banks asked not to offer over Tk118 for remittance dollar

The Bangladesh Bank has instructed commercial banks not to offer a rate higher than Tk118 for purchasing remittance dollars.

A deputy governor of the central bank gave the directive in a meeting with the managing directors of 15 banks yesterday (25 June).

Speaking with several managing directors who were present at the meeting, TBS came to know that during the meeting the banks were warned about purchasing remittance dollars at a higher rate. They were told that any bank buying remittance dollars at a rate higher than Tk118 would be subject to penalties.

The bankers said banks are now collecting remittance dollars at rates between Tk117.80 and Tk118.30. Although remittances from the European market can be collected at slightly lower rates, banks have to offer higher rates to buy remittances coming from the UAE and Qatar, they said.

The managing director of a bank present at the meeting said the dollar market has become somewhat stable compared to before. In previous years, the price of the dollar typically increased during the Hajj period, but it has not increased this year, he said. As a result, banks should not face significant issues if they collect remittance dollars at the rate of Tk118, said the MD.

Banks asked to make timely payments for local and foreign bills

The managing director of another bank said during the meeting, banks were instructed to make timely payments for accepted local and foreign bills. Currently, many banks are not making these payments on time. They were told not to dishonour any foreign bills. It was also mentioned that bills maturing by 30 June must be cleared by 31 July.

During the meeting, several MDs informed the central bank that often local bills created against exports are not exported on time. Besides, exports are sometimes cancelled. This is a major reason why accepted bills are not cleared on time.

During the time, banks were also instructed to inform the central bank if export bills take more than 120 days to arrive, as per the regulations.

Md Mezbaul Haque, executive director and spokesperson of Bangladesh Bank, told TBS that the Bangladesh Textile Mills Association (BTMA) had complained to them that some banks were not making payments on the maturity date of accepted bills. 

"Therefore, the meeting was held to instruct the banks to clear payments on time. Besides, banks have been directed to facilitate the opening of offshore banking accounts to increase investments from expatriate Bangladeshis in the country's banks," he said.

The Bangladesh Bank spokesperson, however, said that no new directives have been issued regarding the rate of remittance dollars.