BB likely to allow non-authorised dealer banks to buy and sell foreign currency
The Foreign Exchange Policy Department will issue letters in this regard soon, say Bangladesh Bank officials
The Bangladesh Bank is likely to grant permission to non-authorised dealer banks to buy and sell foreign currency in a bid to curb the dominance of illegal money changers.
According to the central bank officials, the regulator's Foreign Exchange Policy Department (FEPD) has taken the policy decision and will issue letters to the banks on 14 August in this regard.
The banking regulator plans to meet with the Association of Bankers Bangladesh (ABB) and Bangladesh Foreign Exchange Dealers Association on 14 August to discuss the matter, and also the ongoing volatility in the foreign exchange market.
Currently, around 1,200 authorised dealer branches of banks and 235 licensed money changers have the central bank's authorisation for trading foreign currency with travellers. Around 600 money changers are buying and selling foreign currency illegally.
On Thursday (11 August), the price of the US dollar stood at Tk118 to Tk120 per dollar in the kerb market, while banks are selling the American greenback at Tk105 to Tk110 per dollar to travellers.
BB officials said after the central bank's permission, non-AD banks will also be able to buy and sell foreign currency to travellers.
As per the central bank rules, a money changer is permitted to hold a maximum of $25,000 at the close of each business day.
Central bank officials said the cash beyond this limit would have to be deposited in their respective bank's foreign currency account. The balance of that account must not exceed $50,000 at any point in time, said Bangladesh Bank officials.