Public dependency on the open market for US dollars has increased, where per dollar is being sold at Tk 120-121. The dollar crisis in the kerb market became more acute after Bangladesh Bank and law enforcers raided money changers with allegations of higher exchange rates. In this situation, a number of individuals are selling dollars, through their networks, at Tk 120-121 per dollar. They are becoming the lone source of dollars for those who are traveling abroad for treatment, education, and other emergencies, sources said. Read: Bangladesh Bank introduces dollar booking policy for max 1 year  Jamal (not his real name), owner of a money exchange house in Dhaka’s Motijheel area, told UNB today that they cannot buy a dollar even at Tk 115. “How can we possibly sell per dollar at Tk 113.30?” — he asked. Many other money changers and individual floating traders of the US dollar remain idle due to the supply crisis of the currency. In the span of a month, the exchange rate of the US dollar in the kerb (open) market reached Tk 120-121 per dollar from Tk 112. The central bank and law enforcers recently raided money changers and asked to sell per dollar at the previous rate of Tk 113.30. Read: Selling dollars at higher prices: What is Bangladesh Bank’s action against treasury heads of 10 banks? Market insiders said there is a severe shortage of US dollars in Bangladesh. The price of foreign currency is increasing uncontrollably and the value of taka is falling. As a result, the price of the dollar in the kerb market has crossed Tk 120. Talking to various exchange houses and those involved in dollar trading, UNB learnt that most money changers do not have dollars. Secretary General of the Money Changers Association of Bangladesh, Sheikh Helal Sikder, said that Bangladesh Bank has set the dollar price for money changers. In this case, the buying rate is Tk 111.80 and the selling rate is Tk 113.30. Read: Dollar goes off kerb market after central bank-led raids of money exchanges “No one is getting dollars at this price, so the money changers are now sitting empty-handed,” he said. Replying to a query about the dollar shortage in the kerb market, Bangladesh Bank’s Executive Director and spokesperson, Mesbaul Hoque, told UNB that dollars are being traded, but not everyone is selling them.

The dollar crisis keeps growing in the kerb market, as its price jumped to Tk105 per dollar amid trade bodies appealing for a stable exchange rate. Increasing by Tk 1 from Sunday, one US dollar was sold at Tk 105 on Monday, in the kerb market, which is the highest ever. The kerb market traders said that huge numbers of people are searching to buy dollars, but they cannot manage enough forex at this moment. Because syndicates are actively involved in dollar business, they will only sell the dollar if they get the desired price, said Anowar Ali, a vendor of kerb market dollar trading. People of different categories including tourists, small importers, students, and treatment purposes are purchasing dollars from the kerb market, he said, who sells dollars in the Motijheel area in the capital. Read: Dollar price in kerb market crosses Tk 90 Despite the BB’s move to sell the dollar and relax policies to increase the inflow of forex in the country, the dollar market is yet to be stable since June this year.

The prices of US dollar against Bangladesh currency fell by Tk 5 in the kerb (open) market on Thursday after a hefty raise of forex, amid a rush of imports to meet the demand following easing of Covid pandemic. Bangladesh Bank has, meanwhile, tightened regulations to curb imports of unnecessary and luxury items and added provision of including container and shipping tracking system with the import bills, to protect trade based money laundering in disguise of fake import orders.  Money exchange houses in the areas of Dilkusha commercial area (banks’ zone), Baitul Mukarram, Palton and Gulshan said that they sold one US dollar at Tk 97 to Tk 98 on Thursday. The exchange houses sold per US dollar at Tk102 two day earlier on Tuesday, despite the higher price there remained a shortage of the greenback in kerb markets. Also Read: Despite taka depreciating, banks selling dollars at Tk3-4 extra Anwar Hossain, operating a money exchange for 22 years told UNB that the price of US dollar is not stable yet. He said Bangladesh Bank’s policy is impacting the kerb market to reduce the demand of forex. However, the US dollar exchange rate in the banks has remained unchanged between Tk 93 to Tk 96 for opening LCs. Though the central bank fixed the US dollar exchange rate at Tk 87.50 on Monday this week, banks are selling dollars at a higher rate due to the forex supply crisis. Md. Serajul Islam, Executive Director and spokesman said forex market becomes unstable due to rush of import. Gradually the forex market will be normal and bring a balance on import and export, he said.  

The exchange rate for the US dollar in the open or kerb market has crossed Tk 90 for the first time ever, worrying Bangladeshis looking to travel abroad and pushing up the prices of some imported goods. The businesses expressed concern as the dollar price is fluctuating and it also influences the jump in the US dollar price in the banking channel also. According to Bangladesh Bank (BB), the interbank dollar exchange rate on Sunday was Tk 85.70, whereas it was Tk85.60 on Thursday. Read:China goods, services trade surplus tops 60b US dollars On the other hand, different money exchange houses were selling the greenback at Tk 90.10 on Sunday, which is the highest ever. Business leaders said the dollar price fluctuation is creating uncertainty among the businesses as they cannot be sure what the price of goods they are looking to import would be in 5-10 days. A former governor of BB, wishing anonymity, told UNB that the dollar price has jumped recently due to two reasons: firstly, increased travel abroad for different needs including study, health and entertainment following the COVID-19 restrictions being eased, or lifted around the world. Secondly, increased capital flight from Bangladesh. Giving an example, the former governor said that some recent incidents of banking- and e-commerce-related scams hint at the increased capital flight from Bangladesh. Economists said that Bangladesh’s economy remains on the right track and there is no reason to be worried as such fluctuations in the exchange rate happen sometimes. Former adviser to a caretaker government Dr. Mirza ABM Azizul Islam said that import demand has increased in the post-lockdown time as the industrial production shows a rising trend. The price increase of LNG and petroleum products in the global market is also another cause to raise the dollar demand as Bangladesh uses USD to meet all kinds of import payments, he said. Read: E-commerce has a billion-dollar market: Tipu Munshi