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FOREX VOLATILITY

BB sends four inspection teams to banks

Staff Correspondent
20 May 2022 00:00:00 | Update: 20 May 2022 07:07:48
BB sends four inspection teams to banks

The Bangladesh Bank on Thursday sent four inspection teams to several banks to observe the volatile situation of the foreign exchange market.

Bangladesh Bank Executive Director and Spokesperson Md Serajul Islam said the central bank’s Foreign Exchange Operation Department had sent the teams.

He said the teams would find out the actual situation of the forex market.

The interbank exchange rate was Tk 87.5 per dollar on Thursday, but importers said they were spending Tk 94-96 to pay import bills, terming it a huge burden.

The dollar was sold at Tk 98-100 in the kerb market on Thursday.

The country’s foreign exchange reserves are declining day by day due to growing import payments and a downward trend in remittance earnings.

Forex reserves fell to $41.92 billion on May 11 after paying the Asian Clearing Union $2.24 billion, the central bank data shows. Reserves were $46 billion on February 28 this year.

But Governor of the Bangladesh Bank Fazle Kabir on Wednesday said forex reserves had risen to $42.35 billion.

Industry insiders said imports would decrease in the coming months as the central bank tightened the luxury and non-essential product import rules. Such products include sport utility vehicles, washing machines, air-conditioners, and refrigerators.