Bangladesh Bank revokes licences of three money exchange companies

The national bank instructs law-enforcing agencies to take legal action against 11 more

Published : 1 August 2022, 03:55 PM
Updated : 1 August 2022, 03:55 PM

The Bangladesh Bank has revoked the licences of three money exchange companies for resorting to fraudulent activities to raise the US dollar rate against the taka, not preserving accounts of cash transactions and for opening unauthorised branches.

The central bank also asked law-enforcing agencies to take legal action against 11 organisations for doing foreign currency transactions without a licence.

Bangladesh Bank spokesperson Md Serajul Islam said, “We’re in control of national bank-authorised money exchange companies… but we’ve sent a letter to the law-enforcing agencies to take legal action against those without licences…”

The licences of Bismillah Money Changer, Ankon Money Changer and Foyez Money Changer have been suspended.

As many as 235 money exchange companies are authorised by the Bangladesh Bank and 202 of them are members of the Money Exchange Association.

Money Exchange Association General Secretary Md Helal Shikdar appreciated the move from the central bank.

“Many [money exchange] companies are doing business without renewing their licences. Authorities should take steps against them. These companies hike dollar prices at the first opportunity they get.”

While the Bangladesh Bank carried out the drive, open markets were selling each US dollar at Tk 107-Tk 108.5 on Monday as has been the case amid the supply crunch of the currency.

Bangladesh Bank officials split up into 10 teams to inspect 33 money exchange companies in Paltan, Motijheel, Banani and Dhanmondi for two days over the past week to get to the bottom of the issue.

The dollar exchange rate dropped below Tk 100 in mid-May after climbing to Tk 102, but it peaked to Tk 111 last week. Dollars are being sold at Tk 106-107 at the moment but the supply is still short of the demand.

Along with the open market, many banks have stopped selling dollars in cash. Only the influential are able to buy dollars at Tk 105-106 from these banks.

Toufique Imrose Khalidi
Editor-in-Chief and Publisher