Money changers asked to file detailed forex reports  

The Bangladesh Bank (BB) has asked all money changers of the country to submit detailed reports on purchase and sale of foreign currencies to the BB to ensure more transparency in transactions.

The foreign exchange department of the BB has already amended the existing format of submitting reports asking all money changers to submit those accordingly from the current month.

The money changers, who buy and sell foreign currencies, used to submit monthly reports in consolidated figures, reports the FE.

Bangladesh BankSuch a type of consolidated reports fail to identify sources of purchases and sales thus leaving a space for improper transactions in foreign currencies.

BB deputy general manager Jagannath Chandra Ghosh said Sunday the latest order would help identify actual monthly purchases and sales of foreign currencies by the country’s 236 licensed money changers.

“They (money changers) submit consolidated figures only,” he said.

“From now on, they will have to mention purchases and sales in details,” he said.

Under the new format, money changers will have to mention from whom they purchased foreign currencies and to whom they sold those.

“If they sell to the patients going abroad for treatment, they must mention it,” he said.

The money changers will have to submit monthly reports to the central bank through authorised dealers (ADs).

The BB circular reads: “Money Changers are requested to report their foreign exchange transactions through their nominated AD banks on amended schedules on a monthly basis with effect from June 05, 2014.”

Golam Mostafa, president, Money Changers’ Association of Bangladesh, said the latest BB move would make their business critical.

“It will really make our doing business difficult,” Mr Mostafa said.

He said foreign currency sellers would be discouraged if they were asked about the sources of the currencies.

He, however, said the BB should introduce online-based transactions for the money changers which would ensure more dynamism and transparency.