The Bangladesh Bank (BB) has sent show-cause notice to the managing directors (MD) of six banks over acquisitions of making unusual profits from selling the US dollar. The six banks are Dutch Bangla Bank, Southeast Bank, Prime Bank, City Bank, Brac Bank and Standard Chartered Bank.

The central bank sent the show cause letter to the MDs of the banks on Wednesday (17 August), said Bangladesh Bank sources. On the same day, in another letter, the Bangladesh Bank said that extra profit from the sale of dollars cannot be taken into the bank's income.

They were asked to explain ten issues about dollar dealings including unusual profit and high spread between buying and selling costs. They were also asked to reply in 7 working days.

On the condition of anonymity, multiple senior officials of the aforementioned six banks told The Business Standard that the Bangladesh Bank has sent show-cause letter to them asking to explain the unusual profits made from selling the US dollar. 

Earlier action was taken against the treasury heads of the banks.

Eight more banks make unusual gains from forex dealings

"I do not know yet whether the letter has been sent to the MDs of 6 banks. However, due to earlier reasons, action has not been taken against 6 banks. For the same reason, every bank will be inspected, if evidence is found then action will be taken against them," said Bangladesh Bank Executive Director and Spokesperson Sirajul Islam.

At the same time, through another letter, instructions have been given that those who have made excess profit cannot show the money in a bank's profit.

About a dozen more banks are being brought under the central bank's supervision, sources said. For this, foreign exchange transaction information has been requested from all banks.