Licences of seven foreign exchange houses suspended

Bangladesh Bank has suspended licences of seven foreign exchange houses and served show-cause notices on 10 over their alleged involvement in trading the US dollar in the kerb market at prices higher than that prescribed.

The seven are York Money Exchange Ltd, Zaman Money Changing House, Jeni Money Exchange, Standard Money Exchange Ltd, Mercy Money Exchange Co Ltd, JB Money Exchange, and Bengal Money Exchange.

Bangladesh Bank issued the suspension notices yesterday.

According to Md Mezbaul Haque, spokesperson of Bangladesh Bank, the foreign exchange houses were involved in trading foreign currency at a rate higher than that prescribed in guidelines issued by the Money Changers Association of Bangladesh.

They even provided false data to the BB's online money changer monitoring system and did not regularly provide reports on their foreign currency trade, which is a violation of the licence conditions, he said.

A BB watchdog team had started to conduct inspections at money exchange houses on information that some were trading the greenback at rates higher than that prescribed, he said.

As per rules, exchange houses can purchase each dollar at Tk 1 higher that the official rate and the same is applicable for sales, said Haque.

Currently the official rate is Tk 109.50 per dollar while the BB found the exchange houses selling each dollar for Tk 116 to Tk 117, he noted.

The inspections will continue to prevent manipulation of the dollar price rate in the kerb market, he added.

The 10 from whom explanations were sought are New Prime Money Changer Limited, Uttara Money Changer, Misa Money Exchange Limited, Jamuna Money Exchange Limited, Pioneer Money Exchange, Buriganga Money Exchange Pvt. Ltd, Skaf Money Changer, Hazrat Khwaja Baba Currency Exchange Mudra Binimoy Kendra Ltd., Glory Money Exchange Limited, and Matrik Money Changer.