An exchange rate for all to reduce the volatility of the dollar
A uniform dollar exchange rate will be set for all banks to mitigate volatility in the foreign exchange market.
The decision was taken today during a tripartite meeting between the Bangladesh Bank, the Association of Bangladeshi Stockbrokers (BAFEDA) and the Bangladesh Bankers Association (ABB).
ABB and BAFEDA will fix the exchange rate daily with the verbal consent of Bangladesh Bank, a source said at the meeting.
The new system will come into effect from Sunday.
ABB Chairman and Brac Bank Managing Director Selim RF Hussain told The Business Standard that a number of steps were finalized at the meeting to ensure transparency and more discipline in the foreign exchange market. .
The central bank also assured bankers of a further devaluation of the Taka to narrow the gap between the LC rate and the free market rate.
Bankers have been asked to send proposals to the central bank indicating the level of devaluation they want.
The meeting also decided that exporters can collect their foreign earnings from their concessionary banks so that they cannot sell dollars at high prices to another bank, Bangladesh Bank spokesman Serajul said. Islam.
Once the new system is in place, no bank will be able to buy dollars sent by expatriates at a higher rate. The exchange rate for remittances will be the same for all banks.
Currently, different banks have different exchange rates.
On Thursday, one dollar traded at 97.50 Tk, down from 98.50 Tk a day ago, in the curbside market while the interbank rate was static at 87.90 Tk.
As demand for dollars increased due to increased imports, Bangladesh Bank started selling greenbacks, releasing $5.11 billion to banks through May 12. In FY21, the central bank purchased about $8 billion from banks.
Meanwhile, foreign exchange reserves are under pressure due to an increase in imports in the post-pandemic period and their higher payments caused by rising commodity prices in the international market.
The country’s reserves, which hit $48 billion in August last year, fell to $41.93 billion on May 11.