BRAC Bank to buy over 14 million shares of BRAC EPL

Dhaka, Bangladesh (BBN)– The central bank of Bangladesh has issued a show-cause notice to BRAC Bank Limited for allegedly providing misleading information on foreign exchange rate, particularly for exporters.

“We’ve issued the show-cause notice on Wednesday to the bank on the basis of allegations, submitted by the two others private commercial bank (PCBs) to the central bank,” a senior official of the Bangladesh Bank (BB) told the BBN in Dhaka.

The BRAC Bank has also been asked to explain their position on differentiate reporting of foreign exchange rate – particularly TT (Telegraphic Transfer) clean to the BB by the next two working days.

The BB official also said the central bank will take the next course of action after receiving clarification from the bank.

In the notice, the central bank asked the Managing Director (MD) and Chief Executive Officer (CEO) of the third-generation PCB as to why the BB should not take actions against the bank in line with the existing Banking Companies Act.

Earlier on Tuesday, the PCB reported on their BC (Bill for Collection) selling rate BDT 83.20 while TT clean was BDT 82.20 to the central bank, using ‘web-link’ by 11 am on the day.

The bank, however, purchased the US dollar at BDT 83.35 in the name of ‘corporate purchase’ from exporters of other two PCBs, according to the market insiders.

They also said the rate was not reported to the central bank.

Talking to the BBN, another BB official said the PCB has breached its previous commitment through providing misleading information on foreign exchange rate, particularly for TT clean to the central bank.

Earlier on November 30, the PCB gave formal commitment to stay alert in this regard in future.

The central bank earlier served show-cause notices to 26 banks including BRAC Bank in three phases, asking them to explain their positions on differentiate reporting of foreign exchange rates –particularly BC (Bills for Collection) selling to the BB within two working days.

BBN/SSR/AD