Unusual profits from dollar trading: BB serves show cause notices to ten banks

Staff reporter :
The Bangladesh Bank (BB) has sent show cause notices to 10 banks for allegedly profiting more from selling US dollars.

However, the central bank found some evidence against those banks for making excessive profits from selling the US dollar.

Earlier, BB was started Investigation against 13 commercial banks on last July about their dollar manipulation and finally found prove about the allegation.

Bangladesh Bank Spokesperson and Executive Director Mezbaul Haque yesterday told to the journalists the central bank has found evidence against 10 commercial banks to make unusual profits from dollar trading.

Now as per the Bank Company Act, BB will take further step”.

However, the BB Spokesperson did not mention the name of those banks.

On August 17 last year, the Bangladesh Bank issued show-cause notices to the managing directors (MDs) of six banks for their alleged involvement in dollar manipulation.

The six banks were Dutch Bangla Bank, Southeast Bank, Prime Bank, City Bank, Brac Bank and Standard Chartered Bank.

Amid the ongoing US dollar shortage in recent years, the central bank slashed net open position, a limit for banks to hold foreign currencies in 2022.

Under the latest net open position limit, banks will be permitted to hold 15 per cent of foreign currencies of their capital compared to the earlier limit of 20 per cent.

It is alleged some banks are not following the central bank’s instructions regarding forex trading.

They made excessive profits by buying dollars at a low price from the Bangladesh Bank and selling those at a high price.