The dollar hit an all-time high of Tk 128 in the kerb market marking a peak in its exchange rate on Thursday.
Money exchange outlets sold the dollar at Tk 128 to customers on Thursday, compared to Tk 124 on Wednesday.
Meanwhile, banks maintained their offering at Tk 124 for the greenback to remitters, contributing to renewed volatility in the USD market.
Several traders in the kerb market, speaking on the condition of anonymity, revealed to the Business Post that they are purchasing the USD from customers at rates ranging from Tk 127.30 to Tk 127.50 and selling it to other customers at Tk128. They also mentioned an increase in demand for the USD, despite facing challenges in obtaining the currency from customers.
Both the Association of Bankers, Bangladesh (ABB), and the Bangladesh Foreign Exchange Dealers Association (BAFEDA) have been responsible for setting the exchange rate since September 2022. However, their methods are currently ineffective in stabilising the USD market.
In a meeting held before October 31, ABB-BAFEDA revisited their decision to impose an additional 2.5 per cent incentive from bank funds. Before this revision, banks had the flexibility to determine the percentage of incentives allowed. The meeting, described as a brief recap session, aimed to address and clarify recent news reports, as confirmed by sources to The Business Post.
A treasury head, speaking on the condition of anonymity, said, "The central bank had penalised the treasury head previously. So, if any irregularities occur in the USD market again, the central bank will impose fines on the treasury head."
On July 31, ABB and BAFEDA decided to increase the dollar rates for remittances by Tk 0.50 to Tk 109 per dollar and for export proceeds by Tk 1 to Tk 108.50. Consequently, the gap between official and unofficial exchange rates widened by at least Tk 8.
Presently, state-owned banks offer 1 dollar at Tk 109.50, while private commercial banks provide it at Tk 111.50 per dollar. According to regulations, money exchange markets are allowed a maximum Tk 1 spread when selling the dollar.
