Exchange houses destabilising forex market

TDS Desk:

Treasury heads of the country’s commercial banks on Thursday decided not to buy dollar from the exchange houses at exchange rate over Tk 120 to contain inflation with bringing stability in the forex market.

To ensure proper implementation of the decision, a monitoring committee will be formed later to monitor any market rate movements, escalations, deviations, through coordination among the banks for development of an effective forex market.

The decisions came at a virtual meeting among the treasury heads of the scheduled banks.

Seeking anonymity, the treasury chief of a private commercial bank said exchange houses have been destabilising the forex market continuously increasing the exchange rate, which is unexpected.

If such ill practices of the exchange houses continues, he said, it will be extremely difficult for the country to control the rising inflationary burden on the people of all walks in the society.

“So, we decided not to quote exchange rate over Tk 120 per dollar or equivalent in other currencies to exchange houses and the banks will follow Bangladesh Bank’s circular for encashment of export proceeds”, he added.

He said head of treasuries of the banks will meet once or twice a week to monitor implementation of the above decisions and share views on market condition.

“If either the bank or exchange house breaches the decisions, their names will be made public, he said adding that regulatory actions will be sought from them.