The Bangladesh Bank has directed money changers to sell per USD for no more than Tk 118.50, which is Tk 1 more compared to the official bank rate. The regulator relayed the directive to the Money Changers’ Association of Bangladesh on Sunday.
On condition of anonymity, a senior central bank official said the money changers can purchase USD at most for Tk 117.50, and cannot sell for more than Tk 118.50.
MS Zaman, president of the Money Changers Association of Bangladesh, confirmed the matter to The Business Post, saying, “The central bank started the Crawling Peg system last week, after that the USD rate soared by Tk 7 to 117.
“After that the USD rate in Kerb market increased to Tk 125, and the USD vanished from the Kerb market.”
However, the central bank directed the association to boost monitoring in a bid to curb forex market volatility.
Speaking to The Business Post, several kerb market traders confirmed the rise in rates. As a result, the greenback was hard to find in the kerb market amid reports of hoarding of the currency by traders for profits in the future.
Desperate buyers are being forced to pay up to Tk 125 for one USD in the kerb market, a main source of USD and other major currencies, to meet their travel and treatment expenses abroad.
One of the traders, requesting anonymity, said they are not selling USD at the official rate to customers. If they agree to pay Tk 125, then we will sell. Kerb market traders are also hoarding USD as well.
Preferring to be anonymous, the head of treasury of a bank told The Business Post, “The Bangladesh Bank has directed the managing directors of banks that the highest USD rate for opening (letters of credit) LCs is Tk 118 and lowest is Tk 117.
“However, we opened LCs at Tk 118 per USD on Thursday. We are offering Tk 116 to remitters as well.”
