BB issues show-cause notices to nine banks

The central bank issued show-cause notices to nine banks on Sunday for allegedly providing misleading information about foreign exchange rate, particularly for importers.

"We've issued the show-cause notices based on the findings of our investigation conducted in the port city from October 18 to 22," a senior official of the Bangladesh Bank (BB) told the FE.

The BB probe team found that the banks reported the BC (Bill for Collection) selling rate at Tk 83.85 to the central bank, although they sold the greenback to the importers at rates ranging between Tk 84.70 and Tk 84.95, he said.

The chief executive officers (CEOs) and managing directors (MDs) of the banks have been asked to reply to the show-cause notices by October 31, the official added.

"We will take necessary action after examining the replies of the banks concerned," he said without elaborating.

The demand for the US dollar is increasing gradually, mainly due to higher import payment pressure, particularly for the petroleum products and capital machinery, according to the market operators.

The central bank has been providing its foreign exchange support continuously through selling US dollars to the banks for settlement of the import bills.

A total of $327 million has been sold to the commercial banks since July 01 in the current fiscal year (FY), 2018-19, as part of its ongoing support, the BB data showed.

The US dollar was quoted at Tk 83.83 in the inter-bank foreign exchange market on Sunday, unchanged from the previous level.

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