BB issues show-cause notice to six bank MDs

Logo of Bangladesh Bank

Bangladesh Bank has sought explanation from managing directors (MD) of six local and foreign banks for destabilising the market by making excessive profit from dollars.

Earlier, the treasury chiefs of these banks were removed.

The local banks on the list are Dutch-Bangla, South East, Prime, The City and BRAC bank while the only foreign bank on the list is Standard Chartered.

The MDs of these banks were sent letters on Wednesday.

Bangladesh Bank executive director and spokesperson Sirajul Islam informed Prothom Alo, six MDs have been served notices. They have been asked to explain as to who are responsible for this. Further actions will be taken later in accordance with that.

Previously, the chiefs of the treasury department of these six banks had been removed. Bangladesh bank said that the measure was taken against making extra profit by destabilizing US dollar market.

Bangladesh Bank reviewed the dollar trade information of these banks through inspection. It was said in the review, some of the banks made a profit up to 400 per cent a month by trading dollars. Through which the dollar market was made even more unstable.

The measures were taken in relation to this. Officials of the central bank warned that more actions are will be taken in near future.

A dollar crisis is prevailing in the country since last May for the import cost went up. Export and remittance earnings are failing to pay off the import liabilities. For this, the dollar price has gone up.

At the moment, Bangladesh Bank has set up the dollar price at Tk 86 to 95. However, banks are bringing remittances for Tk 106 to 107 and charging importers Tk 103 to 104 per dollar. Now, Tk 1 has been fixed as the maximum difference for the banks in trading dollars.