SCB hit by shortage of foreign currencies

The Standard Chartered Bank (SCB) is facing severe foreign currency crunch.

Sheikh Abdullahbdnews24.com
Published : 19 Nov 2015, 08:45 AM
Updated : 19 Nov 2015, 08:46 AM

To deal with the crisis, the Bangladesh office of the British multinational bank has recently sought permission for importing foreign currencies worth $5 million.

Bangladesh Bank (BB) says the SCB wants to import $4 million, ‎€250,000 and £100,000.

“We have received a letter from the Standard Chartered Bank seeking permission to import different foreign currencies. We will take a decision according to the rules,” said Executive Director Md Ahsanullah, who looks after the Foreign Exchange Policy Department of the central bank.

The letter cited ‘outflow of foreign currencies’ during ‘the hajj and the Eid-ul-Azha’ as a reason for the crisis.

The SCB has not yet made any official comment on this.

When this correspondent contacted the official of the bank’s public relations department, he was asked to send an email to them.

An email was sent accordingly on Nov 16 but no response came till Thursday morning.

However, a high official of the SCB told bdnews24.com that Bangladesh Navy had requested the bank to provide it around $2 million.

“Moreover, the amount of foreign currencies required to meet the regular demand is not available in the market. This is why we want to import them,” he said.

According to the BB data, the country’s banks had foreign currencies equivalent to $29 million in their stock on Nov 11.

The SCB’s foreign currency reserves on the day were equivalent to $2.27 million.

Earlier on Jul 4, 2010 the Bangladesh Bank allowed the bank to import the foreign currencies.

The central bank itself wants to import foreign currencies due to shortage of supply. It has already written to the National Board of Revenue asking for tax withdrawal for the import. The NBR, however, has yet to take a call on it.

The current exchange rate for $1 is between Tk 81 and Tk 82.5, up from Tk 80 on Oct 15.