SUMMARY

Bangladesh`s central bank has made it clear how much cash money changers are allowed to keep. Money changers that deal in foreign cash currency in the domestic market may hold a maximum of Tk 50 lakh on hand. The country’s reserves have been dropping, and banks have been experiencing a shortage of liquid dollars.

CONTENT 

According to a directive provided in a circular issued on 10 November, 2022, by the Foreign Exchange Policy Department of the central bank, money changer businesses that deal in foreign cash currency in the domestic market may hold a maximum of Tk50 lakh on hand.

The amount of cash that money changers in Taka can hold was not previously disclosed, according to a central bank official. The central bank and law enforcement organizations launched raids and closed down unauthorized enterprises in April when the dollar price on the open market dramatically jumped in comparison to the inter-market.

Cash taka was discovered during raids at several money changers, confusing both the money changers and law enforcement because a money changer has to hold cash taka for buying and selling dollars. The circular has made it clear how much money a corporation may keep.

The Foreign Exchange Transactions Guidelines provide that at the end of each working day, a money exchanger’s cash foreign currency stock cannot exceed $25,000 or an equivalent amount.

Due to dollar manipulation in the nation, the central bank shut down seven unregistered, unlawful organizations on September 27 and 28. The 42 firms had previously received a show cause notice for a variety of violations in dollar trading. Five other restaurants’ licenses have also been suspended.

The nation’s reserves have been dropping, and since last April, banks have been experiencing a shortage of liquid dollars. The country’s stock of cash dollars decreased as fewer expatriates returned, and on July 12 the dollar was first traded on the open market for Tk100.

The price has fluctuated ever since. The cost of a dollar increased to Tk120 on August 10.

In order to stop the manipulation of dollars, the Bangladesh Bank then conducted searches in the open market and exchange facilities. The open market price of the dollar on Thursday was Tk110, and the interbank price was Tk105.28.

Picture and Article Source: The Business Standard