The Bangladesh Bank on Sunday fined treasury heads of 10 banks Tk1 lakh each due to trading of dollars at higher prices.
Bangladesh Bank officials said that these banks had deviated from trading dollars at prescribed rates set by the Bangladesh Foreign Exchange Dealers Association (Bafeda) amid the ongoing dollar crisis.
The treasury heads of the banks cannot avoid responsibility for trading dollars at high prices, they added.
Before imposing the fine, the Bangladesh Bank had sought explanations from the 10 banks over allegations of buying and selling dollars at higher prices than the set price.
Sources at the central bank said that although the maximum exchange rate for imports was fixed at Tk109.50 per dollar, some banks charged as much as Tk117 for a dollar, while selling it at Tk116.
Earlier in July, 13 banks were found to manipulate dollar prices and the central bank had run an investigation into the overpricing of the foreign currency.
Bankers said that dollars were not available at such a rate due to the increased demand for dollars on the market.
They said that they were still facing difficulties in settling import payments and opening letters of credit due to a prevailing dollar crisis on the market.
Despite the government’s 2% incentive, expatriates are not receiving the same high dollar rates through official channels, prompting their continued preference for hundi.
In the past, the Bangladesh Bank had artificially maintained the dollar exchange rate at Tk84 to Tk86.
However, they lost control due to increased demand starting in 2022. Over the last two years, the exchange rate has surged by 30% per dollar.
The current exchange rate has risen to Tk110.50 from Tk94.7 in July 2022 and Tk84.8 in July 2021.
Additionally, on August 30, the Bangladesh Bank suspended licences of seven money exchange houses for trading dollars at prices higher than prescribed rates.
The central bank has also sought explanations from 10 more money changers regarding their dollar trading rates.
