The managing directors and CEOs of 13 banks submitted their explanations for dollar purchases beyond the amount they were allowed, and at rates higher than the official rate, to Bangladesh Bank today (Sunday).

The banks are- BRAC Bank, Islami Bank Bangladesh, Shahjalal Islami Bank, Jamuna Bank, Trust Bank, Rupali Bank, Eastern Bank, Janata Bank, United Commercial Bank, NCC Bank, Mercantile Bank, City Bank and Al-Arafah Islami Bank.

Earlier, the BB sought an explanation from the same 13 banks for raising the US dollar rate aggressively to increase earning remittance.

The central bank in a letter asked these banks to explain the issue satisfactorily by December 22 or face legal action.

The Executive Director and Spokesperson of Bangladesh Bank Husnera Shikha in this regard told UNB that she is unaware of any bank having submitted an explanation yet.

However, the Managing Director and CEO of one of the 13 private banks told UNB that they submitted their explanation to the central bank today (Sunday). The reasons they have submitted are mostly related to business and meeting the needs of their clients.

He said, “We have purchased dollars at higher rates due to the demand of clients for opening LCs for a big volume of import.”

Wishing anonymity, he said that banks have liabilities of clearing deferred LC payments and at the same time new LC opening pressure also for importing goods ahead of Ramadan. In such a situation banks have to purchase dollars from remittance at a higher rate.