DB to conduct drives against $ hoarders

The Detective Branch (DB) of Dhaka Metropolitan Police (DMP) will conduct drives against anyone illegally hoarding USD.

At a press briefing on Thursday, DMP’s DB Chief Mohammad Harun-Or-Rashid said, “If anyone stockpiles the USD illegally to take advantage of the rising prices, we will carry out drives against them.

“We will take action if we get a tip off that someone is hoarding USD, or someone is in possession of USD counterfeiting machines. We are collecting information. If anyone has any info about such activities, please inform us. We will take measures according to the law.”

The country’s economy is under pressure due to the USD crisis. Currently, the Bangladesh Bank is devaluing the Taka against the USD to tackle the high demand. The banking regulator has already taken action to prevent USD price rise by creating an artificial crisis in the kerb market.

The Bangladesh Bank’s ten teams – comprising intelligence agency members – visited different money exchange organisations on Wednesday and collected information about the buying and selling of USD.

As a result, the USD price in the open market fell to Tk 108 on Wednesday, which had risen to Tk 112 last Tuesday.

Meanwhile, The Association of Bankers, Bangladesh (ABB) says the interbank forex market must be active to tackle the ongoing exchange rate volatility.

Selim RF Hussain, managing director of Brac Bank and ABB chairman, said this at a press conference at his bank’s head office in the capital’s Tejgaon on Thursday.

He said the interbank forex market is now inactive but it has to be active.

“If there is transparency and efficiency in this market, equilibrium will be created in dollar prices. We have made a request to the central bank governor in this regard.”

Selim also said many banks have a surplus in terms of dollar income while some have shortfalls.

In this situation, if there is a fair transaction in the interbank forex market, equilibrium will be created in terms of dollar prices, explained the banker. “That equilibrium has not been seen in the last two to three months.”

Thursday’s interbank exchange rate was Tk 94.7, but banks transacted dollars among themselves at more than Tk 100 while it was around Tk 110 in the kerb market. Selim believes the forex market became more volatile recently due to the tendency of some groups to make profits. “They should be identified and punished.”

He said imports were slowing down due to the central bank’s measures taken to tackle the dollar crisis.

“Besides, the good news is that fuel and fertiliser prices have started to decrease in the global market. We will get its benefit in the next one or two months.”

Apart from this, the government’s austerity measures were affecting the management of aggregate demand, he said, adding its benefit would be available soon.

Regarding the recent loan rescheduling facility, the ABB president said the Bangladesh Bank did not offer this under the pressure of any special group.

“The facility will cause non-performing loans in the banking sector to fall. Besides, banks’ accountability and good governance will be ensured.”

He added, “We are not in a risky situation, but we have to be careful.”