Money changers asked to become member of trade body

All licensed money changers will have to become members of their trade body concerned by June 30 to run operations smoothly.   

The Bangladesh Bank issued a notice to this end on June 1.

The central bank said it is necessary for licensed money changers to be a member of relevant association representing the sector in order to streamline the operations of money changing business.

Accordingly, money changers have been advised to be a member of relevant association by June 30, 2023.

AKM Ismail Haq, president of the Money Changers' Association of Bangladesh, welcomed the move.

This will help money changers run business properly and contribute to curbing hundi operations, he said.

There are 235 money changers in the country. Of them, 202 are the members of the Money Changers' Association of Bangladesh, according to Haq.

"Eight money changers have already applied for memberships and the rest will also do the same following the latest circular from the Bangladesh Bank," he said.

There are 235 money changers in the country. Of them, 202 are the members of the Money Changers' Association of Bangladesh, according to Haq.

The notice came as the foreign exchange regime in Bangladesh has been facing a volatile situation for nearly a year owing to a sharp fall in the reserve, which pushed up both the exchange rate and the inflation rate to a record high.

In August, Haq told The Daily Star that many depositors and share market investors came to buy dollars on speculation that the US currency would soar against the taka. They bought dollars like any other products.

On the other hand, tourists who have long-term plans to travel also tried to hold onto dollars, so the demand went up, Haq had said.

But yesterday, he said the tendency to hold US dollars has gone down sharply following the strong monitoring of the central bank as well as law enforcing agencies. 

The US dollar has strengthened by more than 13 per cent against the local currency since August last year. The taka has weakened by more than 21 per cent against the American exchange in the past one year and by 25 per cent since the Russia-Ukraine war broke out in February last year. 

The forex reserve has fallen by about 29 per cent in the past one year amid higher import bills and lower-than-expected export and remittance earnings.