Economic Reporter :
The Bangladesh Bank (BB) has received applications from 23 banks seeking approval for 666 branches to sell dollars in cash.
Central bank spokesperson Serajul Islam confirmed the development on Sunday.
Earlier on 11 August, the Bangladesh Bank issued letters to all commercial banks seeking applications to let them sell dollars at the branch level eying to reduce dependency on money changers.
According to the letter, non-AD (authorised dealer) branches will be given the opportunity to sell the foreign currency in cash to facilitate foreign exchange transactions.
Banks were asked to submit the list of branches by 17 August for the approval.
A senior official of the relevant department of the central bank said, “Applications from banks which applied on the last working day, Thursday, have not arrived yet. Therefore, we have decided to accept applications as of Monday.”
The aim is to give the approval to all applicants, said the official, adding, “One or two might not be granted the approval due to certain reasons.”
The existing rules only allow cash dollar sales from AD branches of banks engaged in foreign transactions.
The central bank wants to increase the range of this service to ease the ongoing dollar crisis, said the official.
“Only AD branches are allowed to sell dollars, which are very few across the country. Most of these branches are located in the district and divisional cities including Dhaka. As a result, customers including expatriate Bangladeshis, foreign tourists have to rely more on money changers for cash dollar sales,” he noted.
“Generally, endorsement is mandatory to buy dollars from banks but not in the open market. As a result, the money exchange houses have established a monopoly over the market for cash dollars. The central bank has taken such steps to reduce the dependence on money changers for cash dollar sales.
From the beginning of this year, the country started facing a crisis of both electronic and cash dollars.
The crisis led to a rise in dollar prices and a devaluation of Taka. Customers had to pay up to Tk118 to Tk120 for a dollar in the kerb market on 10 August.
According to the central bank, the price of the greenback started going up in the face of rising demand for the currency against a slower inflow.
On Sunday (21 August), a dollar was sold for Tk108 to Tk110 in the open market.
Meanwhile, the inter-bank rate was Tk95.
Banks bought a dollar at Tk112 through foreign exchange houses while merchants settled LC at Tk106 per dollar on the same day.
