Bangladesh Bank probing into 10 banks forex dealings

Last updated: March 1, 2011

Dhaka, Bangladesh (BBN)- Bangladesh Bank (BB) has started special inspections to verify reporting and holding and utilization of foreign exchange by commercial banks, officials said.

The central bank of Bangladesh has taken the move against the backdrop of allegations that some commercial banks have been concealing the actual amount of foreign exchange they were holding.

"We'll take drastic action against the defaulting banks after receiving the inspection report," a BB senior official said, adding that the inspection team has started investigation to check foreign exchange deals including the latest position of their foreign exchange accounts.

The probe teams are now investigating into different aspects of foreign exchange dealings in line with the existing foreign exchange rules and regulations, the BB official added.

"We’ll investigate at least 10 commercial banks including two foreign banks to know their actual inflow and outflow of foreign exchange in recent months," the BB official said, adding that the central bank is now monitoring the overall forex market situation closely.
Besides, the inspection team will examine the latest position in regard to realization of export bills that are both due and overdue, the central bank officials confirmed.

"We're trying to find out any undisclosed fund held deliberately by the commercial banks using different techniques," the central bank official noted.

BBN/SI/AD-01Mar11-1:47 pm (BST) 

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