The Bangladesh Bank on Sunday sought explanations from 13 commercial banks regarding a sudden surge in dollar prices on the market.
The central bank has asked these banks to clarify why they recently purchased dollars at unusually high rates, according to officials.
The 13 banks were BRAC Bank, Eastern Bank, The City Bank, Jamuna Bank, Trust Bank, Mercantile Bank, NCC Bank, United Commercial Bank, Janata Bank, Rupali Bank, Islami Bank Bangladesh, Shahjalal Islami Bank and Al-Arafah Islami Bank.
However, the central bank has not yet identified which banks might have manipulated the market.
Financial analysts have criticised this move as insufficient, suggesting that the central bank should initiate a thorough investigation into potential malpractice聽 instead of merely seeking explanations.
They argued that such measures were necessary to uncover the extent of irregularities and take corrective action.
The central bank鈥檚 decision followed widespread criticism of its passive stance amidst an approximately Tk 8 surge in the dollar exchange rate, which recently climbed to Tk 128 per dollar from Tk 120 at the end of November.
The price spike coincides with the country鈥檚 struggle against severe inflationary pressures.
Market experts attributed the surge to poor oversight by the central bank.
Some bank officials alleged market manipulation by certain banks and money exchange houses, as well as heightened demand for dollars ahead of Ramadan.
They claimed that some banks, despite having no immediate need for large dollar reserves, were purchasing dollars at inflated rates and selling them to other banks at even higher prices.
This surge in dollar prices is expected to raise the cost of essential commodities like onions, dates, soya bean oil, lentils and spices ahead of Ramadan, undermining government efforts to stabilise supplies and prices during the holy month, when demand typically increases.
Businesses have warned that the elevated exchange rate could disrupt imports, potentially invalidating benefits such as value-added tax exemptions intended to ease the cost of imports.
