The Bangladesh currency was further weakened by Tk1.10 against a US dollar as Bangladesh Bank (BB) on Sunday set the inter-bank exchange rate of the greenback Tk89.

The rate in case of the bills of collection (BC) or import was set at Tk89.15, to make the foreign exchange market stable, said the central bank announcing the depreciation for the 7th time this year.

Also read: BB to set uniform exchange rate to stabilize volatile dollar

Md. Serajul Islam, executive director and spokesperson of BB told UNB that the central bank has set a standard rate for interbank US dollar exchange, on basis of this exchange rate of other purpose will be fixed additional of Tk0.05 to Tk0.15.

The central bank set the unified dollar exchange rate on Sunday as per the meeting with Association of Bankers, Bangladesh (ABB), an association of banks’ CEOs-MDs and Bangladesh Foreign Exchange Dealers Association (BAFEDA) on Thursday, he said.

The new exchange rate will be executed from Monday (May 30), he said.

Several bankers who attended the meeting with the BB governor told the reporter that the central bank is trying to control dollar price which is actually not good for remittance and export income.

“Without acknowledging the reality, the central bank still wants to keep the dollar price below Tk90. Although in reality the dollar is being exchanged above Tk95,” the bankers said.

Earlier, BB governor Fazle Kabir assured dollar supply to the banks to meet the forex demand and bring back stability in the market.

He said a huge trade deficit has been created due to growing inflation and unstable US dollar rate.

Kabir said not only Bangladesh Bank, all government and private commercial banks have to work collectively to get relief from the situation.

Also read: Dollar rate: BB governor to hold meeting with bank MDs Thursday

In order to ease the dollar demand the central bank imposed a number of restrictions on imports including raised LC margin.

In line with the BB, the National Board of Revenue has also imposed over 30 per cent additional regulatory duty on import of luxury products.

Despite several initiatives the forex market has become volatile since April due to an increased rush for import LCs.