Maximum $ rate for remitters lowered to Tk107.5

The maximum US dollar rate for remittance collection has been lowered to Tk 107.50 per dollar from existing Tk 108 and the new rate will be applicable from October 1.

The Bangladesh Foreign Exchange Dealers’ Association (BAFEDA) and the Association of Bankers, Bangladesh (ABB) reviewed the forex market and re-fixed the new US dollar rate in a meeting on Monday.

The meeting was held at the state-run Sonali Bank’s headquarter at Motijheel in the capital.

The US dollar rate for encashment export bills will remain unchanged at Tk 99 per dollar.

On the other hand, the rate of LC (Letter of credit) settlement will be fixed adding 1 taka with the average of the above two exchange rates.

ABB Chairman Selim RF Hussain and BAFEDA Chairman Md Afzal Karim led their respective organisations in the meeting.

Before the move, the two apex body on September 11 fixed a uniform exchange rate of the US dollar to curb the instability in the foreign exchange market, setting a maximum of Tk 108 for foreign exchange houses to collect remittance and Tk 99 for encashment export bills.

Bangladesh Bank’s former governor Salehuddin Ahmed said, “The fixed remittance collection rate may impact our remittance earnings in the coming days as Bangladeshi expatriates can be discouraged due to the move.

Former lead economist of World Bank, Dhaka office Zahid Hussain also said that the multiple USD exchange rates could increase the importers’ suffering, and the move could cause the price of essential commodities to go up further in the coming days.

After allowing floating exchange rate, the inter-bank exchange rate has increased sharply.

On September 26, the highest inter-bank exchange rate stood at Tk 107.40 per USD, which was at Tk 96 per dollar before allowing floating exchange rate. The Bangladesh Bank allowed the floating exchange rate to reduce pressure on forex reserves. However, the fall continues, hitting $36.85 billion on September 21.