Importers of the country can make advance bookings in dollars for a maximum period of three months. In this case, the banks will determine the forward rate (future price) of the dollar for three months.
Bangladesh Bank (BB) clarified the matter in a notification on Tuesday. As the current price of dollar is Tk110.5, the price of dollar will be Tk113.85 in case of booking for three months.
And if any importer makes a dollar booking for a period of less than three months, the dollar price will be determined at a proportionate rate.
On Sunday, BB introduced new rules to determine the forward rate of the dollar. It fixed the maximum rate of dollar price.
According to the rule, after one year, the bank will be able to take up to 5 per cent more than the current price of the dollar with a SMART rate.
The method on which interest rates are now determined is known as SMART or Six Months Moving Average Rate of Treasury Bills.
Bangladesh Bank informs this rate at the beginning of every month. SMART rate was 7.10 per cent in July. It increased to 7.14 per cent in August, which remained unchanged in September.
BB however introduced the new rule after taking action against 10 private sector banks for selling dollars at high prices to importers and buying expatriate income at high prices.