The dollar price is still high in the kerb market, though the central bank took necessary steps to suspend the licences of seven money changers and issue show-cause notices to 10 others over their alleged involvement in selling dollars at the higher rate than fixed ones.
The seven firms are: York Money Exchange Ltd, Zaman Money Changing House, Jeni Money Exchange, Standard Money Exchange Ltd, Mercy Money Exchange Co Ltd, JB Money Exchange, and Bengal Money Exchange.
Bangladesh Bank issued the suspension notices on Wednesday.
According to Md Mezbaul Haque, the spokesperson for Bangladesh Bank, the seven firms were involved in trading foreign currency at the rate higher than the amount prescribed in the guidelines issued by Money Changers Association of Bangladesh.
“These money changers provided false information to the central bank and did not submit reports on their foreign currency data, violating the rules. BB’s monitoring team found these irregularities,” he added.
On Thursday, the dollar rate was Tk 118 in the kerb market.
Talking with The Business Post, many money exchangers said that they sold the dollar at the rate of Tk 117.50 earlier while at the rate of Tk 118 on Thursday.
Executive Director of Policy Research Institute of Bangladesh Ahsan H. Mansur said, “The dollar market has become volatile again. The interbank market will get into trouble as the Bangladesh Bank (BB) will have to devalue taka again.”
Money exchangers hold the dollars as they expect its price will rise again, he told The Business Post.
Last year the dollar rate soared to Tk 122. At that time, BB took a set of measures to handle the dollar price. Since September 2022, Association of Bankers, Bangladesh (ABB) and Bangladesh Foreign Exchange Dealers Association (BAFEDA) have been fixing the dollar rate for every month.
ABB and BAFEDA fix the rate for remittances and exports. But a good number of banks are not following the rules. The dollar market became volatile as several banks were charging higher rates on export proceeds, according to BB.
