Banks have to sell 10 per cent of the USD earned from remittances in interbank at Tk 114.
The Association of Bankers, Bangladesh (ABB) and the Bangladesh Foreign Exchange Dealers Association (BAFEDA) made the decision held at a virtual meeting on Tuesday.
In the meeting, ABB and BAFEDA decided that dollar exchange rate for remittances and export proceeds at Tk 110.50. Banks can charge Tk 111 for import bills.
Later, ABB and BAFEDA revised the decision of 2.5 per cent extra incentives from the bank fund. Banks can allow incentives to any percentage before approval from their board. But selling will not be more than 111.00
However, banks can charge a cash rate for student files.
The new rate will come into effect from Wednesday. ABB and BAFEDA have instructed all banks to follow the fixed rates.
BAFEDA Chairman and CEO and Sonali Bank Managing Director Md Afzal Karim confirmed the development to The Business Post after the meeting.
“We’ve instructed all the banks to follow the rules and not charge more than the fixed rates. Otherwise, the central bank will take action against them,” he stressed.
Several heads of Treasury with conditions anonymity told The Business Post that the 10 per cent of USD sold in the interbank will create chaos in the banking sector. Exporters will not be willing to cash the dollar.
“If the banks sell Tk 114 in the interbank, then it will be a loss, and as per the central bank rules, the banks cannot sell USD at loss. As a result, this decision will be contradictory as the central bank’s rules,” they said.
Another private Treasury head said, "We don't know why this decision has been taken. At the end of the day, the central bank fines the treasury head. I think 10 per cent of USD remittances sent to the interbank is not good decision.”
Another treasury head told the Business Post that the central bank fined the treasury head. But the managing director of the banks could not tell us how it would be run. So, if there are any irregularities again in the USD market, then the central bank will be fined the treasury heads.
On July 31, ABB and BAFEDA decided to raise the dollar rates for remittance and export proceeds by Tk 0.50 to Tk 109 per dollar, and by Tk 1 to Tk 108.50, respectively.
