Trading dollar at high prices: Fines on 10 bank treasury chiefs waived

The central bank has waived fines imposed on the heads of treasury departments of 10 banks who were penalised Tk1 lakh each for trading dollars above the regulated price.

However, strict warnings have been issued to them, with the condition that they refrain from such actions in the future.

The decision was made during the 433rd meeting of the Bangladesh Bank's Board of Directors, chaired by Governor Abdur Rouf Talukder today (19 March), according to sources present at the meeting.

Previously, the heads of treasury departments from six banks were relieved of their duties due to similar offences, though they were later pardoned by the central bank.

The Bangladesh Bank initiated the disciplinary process by sending letters of complaint on 3 September, asking treasury chiefs to justify their actions regarding the sale of dollars at inflated prices.

Dissatisfied with the banks' explanations, the central bank decided to penalise the treasury chiefs from 10 banks.

A bank official said most of the accused treasury chiefs were involved in selling dollars to importers at rates higher than the prescribed ones.

"This is usually done under the direction of the head or senior officials of the institution, even if only two individuals execute the transactions," the official added.

When asked about the waiver, Bangladesh Bank Spokesperson Md Mezbaul Haque said that he was not officially informed about the matter.

For the past 18 months, the Bangladesh Foreign Exchange Dealers Association and the Association of Bankers, Bangladesh have been setting the dollar price under the guidance of the Bangladesh Bank.

Currently, the remittance and import rate at banks stands at Tk110 per dollar. However, for the past year, banks have been acquiring remittance dollars at rates of Tk120-Tk124, exceeding the fixed price.

Today, the rate decreased, with banks acquiring remittance dollars from foreign exchange houses at Tk113.50.