Dollar
BGB seizes USD 80,000 from Chuadanga border
Border Guard Bangladesh (BGB) members seized USD 80,000 from Fulbari border in Damurhuda upazila of Chuadanga district Wednesday morning while those were being smuggled to India.
However, BGB couldn’t detain the suspected smuggler who was carrying the foreign currency.
The information was revealed at a press briefing at 6 BGB Headquarters in the afternoon.
According to BGB, upon secret information, they conducted a drive along Fulbari border and found a person trying to cross the border with a bag through pillar No 85.
The person left the bag and fled when BGB members chased him.
Read: Man held with $50,000 at Chuadanga
The BGB men found eight bundles of US dollars amounting to USD 80,000 inside the bag.
Lieutenant Colonel Shah Md Ishtiak, Director of BGB Chuadanga-6, said a case was filed with Darshana Police Station in this regard.
“Primarily, we’re suspected that the foreign currency was being smuggled from Bangladesh to India,” said Ishtiaque.
US dollar rate soars to Tk112 in kerb market amid franctic purchase
The exchange rate for an American dollar jumped to Tk112 in the unofficial (kerb) market on Tuesday, witnessing the worst-ever slide of Bangladeshi currency.
Traders of the kerb market, where out-of-bank cash dollars are sold and bought, told the UNB that in the last couple of weeks, the exchange rate of dollars increased drastically.
Abdul Malek, owner of an exchange house in Motijheel said they sold a dollar for Tk 105 on Monday.
Read Ecnec postpones Tk 236-crore project of Teletalk to save dollars
But it jumped up to Tk 112 on Tuesday, the highest single day increase of the dollar ever in the country, he said.
Private banks sold dollars at Tk103 to 104 on Tuesday for foreign trading and opening LCs for imports.
On July 26 last year, the American dollar traded at Tk 84.80, meaning there has been an 11.67 per cent loss in the value of the local currency in a year.
Read: Dollar price jumps to Tk 105 in kerb market, amid BB’s move to stable it
The kerb market traders said that there had been a surge of demand in US dollars, compared to the short supply.
They said syndicates involved in dollar business are partly to blame for the chaos.
The surge happened as a large number of buyers, including tourists, small importers, students going abroad for studies and patients bound for treatment frantically looked for the dollar at the kerb market in Motijheel.
Read BB warns exchange houses against manipulation of dollar price
Despite the BB’s move to sell the dollar and relax policies to increase the inflow of forex in the country since June this year, the dollar market is yet to stabilise.
Amid growing demand, banks sell dollar at Tk99
Banks are selling US dollars for import payment at Tk98 to 99 which is the highest exchange rate of dollars ever in the banking channel.
Though the Bangladesh Bank (BB) is selling US dollars at Tk92.95 to the scheduled banks, the banks are selling dollars higher at Tk 3-4.
But banks are receiving US dollars as remittance atTk 97 while the same US dollar is being sold for import payment at Tk98-99.
Also read: BB selling US dollar at Tk 92.5 after further devaluation
Earlier in May, the exchange rate of dollars had crossed Tk100 in the kerb (open) market. Now in the case of bank transactions, the price is touching Tk100. Earlier, the dollar exchange rate in the banking sector rose to a maximum of Tk96.
Bangladesh Bank is not able to decide what to do with the dollar rate. Once the dollar price limit was set, it was lifted again. Although in reality the exchange rate of the dollar has gone up.
However, the central bank is supplying US dollars to banks as per requirement and around $7.5 billion is sold to banks to make the exchange rate of dollars stable.
Md Serajul Islam, Executive Director and spokesperson of Bangladesh Bank, said, “The open market economy now relies on market situation. Due to increased domestic consumption, imports are under more pressure compared to exports.”
Also read: BB allows floating exchange rate of US dollar amid pressure
In such a situation banks are unable to meet the growing demand of forex, this is why dollar price has increased a bit, he said.
With Covid-19 pandemic easing, the demand for commodities has increased sharply. The Russia-Ukraine war also fuelled the price hike of commodities in the global market due to disruption of supply chain.
Amid volatile forex market, BB devalues currency by Tk1.60
In a bid to tame the restive foreign exchange market the Bangladesh Bank has depreciated the local currency by Tk1.60, the highest so far, to fix the exchange rate of US dollar at Tk91.50.
Monday’s devaluation of taka, for the ninth time this year, came as the central bank is grappling with the growing demand of the greenback compared to supply.
Md Sirajul Islam, executive director and spokesperson of BB told UNB, "The rate at which Bangladesh Bank sells dollars to banks is considered as the interbank selling rate."
Also read: BB allows floating exchange rate of US dollar amid pressure
On Monday, the central bank sold per US dollar at Tk91.50. Last Thursday, the BB depreciated taka by Tk0.90 and fixed the exchange rate at Tk89.90.
At the beginning of January this year, the central bank increased the exchange rate of the dollar by Tk0.20 to Tk86.
On March 23, taka weakened by Tk0.20 and fixed exchange rate at Tk86.20. On April 27, it was devalued by another Tk0.25. Then the exchange rate of per dollar stood at Tk 86.45. On May 9, the exchange rate of taka was devalued by Tk0.25 to and fixed it to Tk 86.70.
Also read: BB to set uniform exchange rate to stabilize volatile dollar
Then on 16 May the value of taka was reduced by Tk0.80 and the exchange rate was fixed to Tk 87.50 against per US dollar. Then on May 23, taka depreciated by another Tk0.40 and the price was fixed at Tk87.90.
BB to set uniform exchange rate to stabilize volatile dollar
Bangladesh Bank (BB) has decided to set a uniform exchange rate of US dollar with taka for all banks to follow to tame the volatile forex market.
The central bank asked the banks and foreign exchange dealers to recommend a uniform rate by Sunday on which it can take a decision.
This emerged from a tripartite meeting the central bank held on Thursday with the Association of Bankers, Bangladesh (ABB), an association of banks’ CEOs-MDs, and Bangladesh Foreign Exchange Dealers Association (BAFEDA).
Also read: Dollar rate: BB governor to hold meeting with bank MDs Thursday
The meeting also warned banks to stay away from any manipulation in destabilize the forex market amid a fall in the reserve.
Md Serajul Islam, executive director and spokesperson of BB told reporters after the meeting it also discussed ways to increase remittance, curb unnecessary import and some other banking issues.
The BB governor Fazle Kabir assured liquidity support and dollar supply to the banks to meet the dollar demand and bring back stability in the market.
Also read: BB depreciates taka by Tk 0.40 against US dollars
Besides, the BB decided to stop selling export bills from a bank to any other bank.
ABB Chairman and BRAC Bank Chief Executive Officer (CEO) Selim RF Hussain told UNB, several decisions have been taken in the meeting to ensure discipline and transparency in the foreign exchange market.
Dollar rate: BB governor to hold meeting with bank MDs Thursday
Bangladesh Bank (BB) Governor Fazle Kabir will have a meeting with the managing directors (MDs) of commercial banks on the volatile dollar.
The meeting will be held Thursday, Sirajul Islam, spokesperson and executive director of the central bank, told UNB Wednesday.
"The governor will hold a meeting with leaders of the Association of Bankers Bangladesh (ABB) Thursday to discuss the overall forex market situation."
The meeting will look into why the banks are selling dollars at higher rates than the inter-bank exchange rates.
Other issues in the banking sector can also be discussed, Sirajul said.
Also read: BB depreciates taka by Tk 0.40 against US dollars