USD exchange rate dips again

The highest inter-bank rate for USD dipped to Tk 102.56 on Tuesday, a decline from Tk 108 recorded on Monday. This figure fluctuates daily as the Bangladesh Bank recently allowed floating exchange rate of the American greenback.

According to the Bangladesh Foreign Exchange Dealers Association (BAFEDA) web portal, the highest buying rate of USD reached Tk 106.77 on Wednesday. On that day, Islami Bank Bangladesh bought USD at Tk 106.69, Rupali Bank Tk 106.25, and Global Islami Bank Tk 106.11.

On Wednesday, most of the banks sold USD for Tk 105 to Tk 108. State-run Sonali Bank sold per USD for Tk 105.47 and Rupali Bank for Tk 106.65.

After the central bank allowed a floating exchange rate for USD on September 13, the inter-bank exchange rate rose drastically.

Despite allowing a floating exchange rate, the regulator is still selling USD to banks from its forex reserves. During July to September 21, the banking regulator sold over $3 billion to banks, central bank officials told The Business Post.

The official said the central bank is currently providing USD support to banks only for covering government import payments.

Due to the continued USD selling spree of the central bank, the foreign exchange reserves of Bangladesh dipped to $37 billion on Tuesday, compared to $48.11 billion posted in the same month last year.