With Ramadan on the horizon, demand for dollars has surged due to increased imports, the settlement of overdue letters of credit (LC) bills, and a spike in foreign travel.
However, the supply of dollars has not kept pace with the rising demand, causing instability in the forex market.
To meet the heightened demand, banks are purchasing remittances at rates 8 to 9 taka higher than the officially declared price of Tk120 per dollar.
Some banks have reportedly paid up to Tk128 for remittances, while the open market rate has climbed to Tk129.
A week ago, the dollar traded in the open market for Tk123–124.
Information gathered on Sunday from banks and money changer houses in Motijheel and Dilkusha areas revealed that unscrupulous groups are taking advantage of the volatile situation, exacerbating the crisis.
The central bank has summoned transaction details from 13 suspected banks to investigate the matter. Measures have been intensified to stabilise the forex market, including stricter monitoring of transactions.
Unnamed banking officials disclosed that the central bank has instructed banks to settle outstanding import bills by the end of the month. Consequently, banks are acquiring dollars at premium rates, leading to an increase in remittance inflows. Over $2 billion in remittances were received in the first 21 days of the month, boosting Bangladesh’s total reserves to $24.95 billion. However, under the IMF-recommended BPM6 calculation, the reserve stands at $19.95 billion, with $15.14 billion available for expenditure.
Bangladesh Bank data shows that the maximum dollar rate set for banks is Tk120, up from Tk118 in June and Tk110 in December 2023.
Over the past year, the official dollar rate has risen by Tk10, while the market-adjusted rate has increased by Tk18.
Bangladesh Bank said a special team has been formed to investigate the market instability.
"We have intensified monitoring and sought transaction details from several suspected banks. Some banks have already submitted the required information. Based on findings, further measures will be taken," said Husne Ara Shikha, spokesperson and executive director of Bangladesh Bank.
