The dollar market, which had remained stable for nearly three weeks following strict regulatory measures, is once again showing signs of volatility as banks face mounting pressure to clear overdue import payments.
According to senior officials from at least eight banks, the buying rate for remittance dollars climbed to Tk122.50 on Tuesday (28 January), marking a 50-basis-point increase over the past two weeks, with a sharp 20-basis-point rise in a single day.
However, banks continue to report the rate as Tk122 to the Bangladesh Bank in compliance with regulatory directives.
In December, the Bangladesh Bank imposed verbal restrictions, capping the maximum buying rate for remittance dollars at Tk122 and limiting the spread between buying and selling rates to Tk1.
Banks were warned of punitive measures, including fines, for violations.
This policy initially stabilised the market, with banks offering rates between Tk121.50 and Tk122.
However, pressure from overdue import payments has fuelled intense competition among banks to secure remittance dollars, pushing rates higher.
At a recent meeting of the Bangladesh Bank Authorised Dealers Forum, banks were instructed to clear all outstanding payments related to general imports and back-to-back import letters of credit (LCs) without delay, with warnings of penalties for non-compliance.
The directive further heightened demand, leading to a sharp 20-basis-point rate increase in just one day.
Concerns have emerged over how certain banks are securing significantly higher remittance inflows despite ostensibly offering the same rates as their competitors.
Industry insiders suggest that banks employ various methods to circumvent the official rate cap.
One common practice involves linking importers with aggregator remittance houses, where additional payments are made separately to circumvent regulatory restrictions.
Other methods include covertly paying extra rates, creating temporary accounts to hold excess amounts, and later transferring funds through backchannels.
Officials claim that the central bank is aware of these tactics and has previously taken punitive action against certain banks.
In December 2024, when the dollar rate soared to Tk128, the regulator summoned 13 banks to explain why they were purchasing dollars at rates exceeding the official cap.
The central bank subsequently tightened controls, instructing treasury heads not to buy remittance dollars above Tk123.
To curb the influence of aggregators, the Bangladesh Bank has relaxed regulations for smaller exchange houses, removing the requirement for a $10,000 security deposit and minimum balances in Non-Resident Foreign Currency (NRFC) accounts.
Effective 1 February, these changes will enable smaller exchange houses to sell remittance dollars directly to banks, potentially increasing transparency in the remittance market.
