Bangladesh Bank suspends five money changers’ licence

Bangladesh Bank has suspended licences of five foreign exchange houses and served show-cause notices on 42 for their alleged involvement in the manipulation of US dollar prices in the kerb market.

The licences of Aunkon, Foyez, and Bismillah were cancelled. The rest 2 are under process to face the cancellation.

Ten inspection teams started visiting money changers around Dhaka city on July 27 to investigate whether they were intentionally hoarding US dollars to hike their rates against the taka.

In the last one week, the central bank inspected 80 money changers, said Md Serajul Islam, spokesperson of Bangladesh Bank.

He shared the information during a press briefing at the Bangladesh Bank's office in Dhaka today.

The banking watchdog started inspecting the foreign exchange houses after the US dollar price hit Tk 112 in the kerb market, the highest in the history of Bangladesh.

Bangladesh has 235 money changers, which sell foreign currencies to the travellers.

As per the central bank rules, a traveller is allowed to purchase a maximum of $1,000 from a money changer if s/he goes outside of the country by air.

The purchased amount of dollars by a traveller is $500 if s/he go to a foreign nation by land routes.

Travellers, however, can purchase their entire annual ceiling of the greenback to the tune of $12,000 from banks.

A money changer is permitted to hold a maximum of $25,000 at the close of each business day.

Cash beyond this limit will have to be deposited with their respective bank's foreign currency account.

The balance of that account must not exceed $50,000 at any point in time.