Dhaka, Bangladesh (BBN) – The central bank of Bangladesh is going to investigate into alleged over-invoicing by two private commercial banks (PCBs) for opening letters of credit (LCs) for import of edible oil.
“The central bank will take actions against the banks concerned after completing the investigation,” a senior official of the Bangladesh Bank (BB) said, adding that the BB is now closely monitoring the prices of opening LCs for importing commodities.
He also said the central bank is scrutinizing the price of opening LCs of the imported items, provided by the commercial banks, in cooperation of the Bangladesh Tariff Commission.
BB has found higher price of opening LCs for edible oil in statements submitted by two PCBs in May last.
 “We’ve checked the quoting prices of LCs with the Bangladesh Tariff Commission’s data and found that the banks have accepted the LCs at higher prices,” another central banker said.
The issue was also discussed at a commerce ministry’s meeting on June 13 that recommended BB to investigation into the mater.
Khatungong branch of a leading PCB accepted a LC of crude soybean oil worth US$ 1315.53 per tone on May 10 while the international market price of it was $1216.53 per tone, according to the BB officials.
Another leading PCB opened a LC for crude palm oil worth $1212.00 per tone on May 13 as against $1091.94 per tone in the global market.
Besides, four more PCBs also opened LCs for edible oil allegedly violating the existing rules and regulations relating to foreign exchange transactions, the central bankers said.
“We’re now examining the documents relating to opening LCs of four PCBs,” he said, adding the next course of action will be decided after completing scrutiny of the documents.
BBN/SSR/AD-18June12-10:08 am (BST)