India-Bangladesh trade using rupee instead of US dollar could start soon
Bangladesh could soon start trading with India using rupee instead of US dollar, trial for which has been done by Bangladesh Bank recently.The ministry of commerce has placed a written recommendation at the last cabinet meeting regarding the possibility and opportunity of using rupee instead of dollar. Currently Bangladesh exports goods to India worth around USD 2 billion. “The use of rupee will start with Bangladesh's $2 billion trade with India. Bangladesh Bank has almost finished all kinds of trials in this regard. Trading in rupee will be introduced in both countries only after bilateral decision on some issues,” an executive director of Bangladesh Bank told UNB. Read More: Bangladesh Bank yet to allow Indian rupee in foreign trade Wishing anonymity, he said that banking systems in India and Bangladesh have to sign separate agreements on using rupee. Meanwhile India-Bangladesh Chamber of Commerce and Industry (IBCCI) has submitted the total trade account to the central bank in the form of a proposal. This initiative is being taken to overcome the existing dollar crisis, sources said. Bangladesh Bank spokesperson Md Mezbaul Haque said that India-Bangladesh trade, using rupee instead of US dollar, is still in the experimental stage. Some issues still need to be settled. “There are some bilateral issues that need to be resolved. Then the banks have to prepare. But there will be a positive decision in this regard,” he added. Read More: Indian businesses eager to invest in various sectors In response to a question whether there will be a fixed annual dollar quota for opening LCs, he said, LCs will be opened according to the needs of businessmen. But the only source of rupees is from the export earnings of Bangladeshi goods in India. “We are importing more from India than we export. This is why there is a trade deficit. As a result, the amount of rupee is also being considered,” Mezbaul said. Currently India is trading in rupees with Russia, Mauritius, Iran and Sri Lanka. At the Bangladesh-India ministerial meeting on trade, held in the Indian capital New Delhi on December 22-23 last year, India proposed to introduce the rupee as a medium of trade for both countries. Read More: Bangladesh maintains close ties with all – China, US and India: PM tells CNN Then, on the sidelines of the meeting of G20 Finance Ministers and Central Bank Governors held in Bengaluru, India on February 24-25, there was a discussion between the two countries about moving the dollar as an exchange currency. There, Bangladesh Bank Governor Abdur Rauf Talukder and Reserve Bank of India Governor Shaktikanta Das discussed the possibility of such a system using rupee instead of US dollar.
Sugar to cost Tk 5 more per kg from Feb 1
The government has increased sugar price again, by Tk 5 per kg, which will be effective from February 1, 2023. As per discussion with the commerce ministry, a circular has been issued today (January 26, 2023) by the executive secretary of Bangladesh Sugar Refiners Association. After the price hike, the maximum retail price of unpackaged sugar will be Tk 107 while the price of packaged sugar will be Tk 112. Read more: 1250MT sugar on 42 trucks from India stuck at Benapole for a month “Taking into account the price increase in the international market and the exchange rate of the US dollar and the production cost going up, the price of unpackaged sugar per kg has been set at Tk 107 and packaged sugar at Tk 112 per kg – subject to discussion with the Ministry of Commerce,” the notification said. Earlier, the government increased the retail price of sugar in November 2022. Currently, the price of packaged sugar is Tk 107 and unpackaged sugar Tk 102 per kg. In the market, however, unpackaged sugar is sold at Tk 110 and packaged sugar at Tk 120 per kg. The retailers have blamed wholesalers for increasing the sugar price. Read More: Production stops at Joypurhat Sugar Mills for want of sugarcane
Can You Travel Abroad Without Buying US Dollars?
With the price of the US dollar skyrocketing, Bangladeshi travellers are directly affected by fluctuating exchange rates. Should you then drop your travel plans until the price of the US dollar becomes stable? Is there any way to deal with this dollar crisis and still travel? Let’s look at some alternative ways to travel abroad without purchasing US dollars. WHY YOU SHOULD CONSIDER ALTERNATIVES TO BUYING US DOLLARS Traveling abroad can be an exciting and enriching experience, but it can also be expensive. One of the biggest expenses of international travel is the cost of converting Bangladeshi taka into the currency of the country you are planning to visit. Travellers usually carry US dollars when visiting any foreign country. The recent price hike of US dollars has made the exchange rate high regardless of the base currency. Therefore, it would be wise and cost-effective for travellers to consider the alternative ways. Read More: Bangladeshi passport’s ranking improves in 2023, still behind Iran and Sri Lanka as per Henley Index WAYS TO TRAVEL ABROAD WITHOUT BUYING US DOLLARS · USE CREDIT CARD Bangladesh Bank advises taking dollars through an international card (dollar-endorsed VISA/Mastercard) in case of traveling abroad. It has given this advice due to rising exchange rates and supply shortages in banks and open markets. The difference between the cash dollar price in the open market and the bank is currently over Tk 10. It is cheaper to endorse dollars on your credit card. In the current situation, it may save you around Tk 5 to 10 per US dollar. However, currently, the exchange rate for cash and card endorsement is the same, which is Tk 106 (as of January 12). According to a news in August 2022, when it cost up to Tk 109.50 to buy one US dollar in the open market, the price of buying dollars through a bank or card went up to Tk 95. Read More: Beach Bucket List: 9 Magnificent Sea Shores in South Asia “This is why we are recommending travellers to request their banks to ask for travelcards instead of asking for cash, so that they pay less,” Bangladesh Bank spokesperson Sirajul Islam told media at that time. · BUY THE LOCAL CURRENCY OF YOUR TRAVEL DESTINATION Buying the local currency of the country where you are traveling can reduce your exchange cost. The exchange rates of different currencies against the US dollar have also gone up. So, you can check if buying your destination country’s currency reduces the cost or not. For example, if you are travelling to India, buying rupees from Bangladesh may give you more currency than converting to the US dollar. You · USE DIGITAL WALLET Many countries now accept digital wallets such as Apple Pay and Google Wallet. If you plan to travel to a country that accepts these types of payments, you can avoid the need to convert your currency altogether. You can load currency using a third-party service. Read More: 10 Best Professions for Travelers · TAKE ADVANTAGE OF FOREIGN ATMS When you are in a foreign country, it can be more cost-effective to withdraw cash from an ATM than to convert currency at a bank or currency exchange shops. If you have a dollar-endorsed card from Bangladesh, you can withdraw money in the country you are traveling to using the local ATMs. However, check with your bank to ensure that your card will work in the country you are planning to visit and see if there are fees for using foreign ATMs.
Bangladesh Bank raises dollar exchange rate by Tk 1 to Tk 100
Bangladesh Bank (BB) on Wednesday increased exchange rate of a US dollar by Tk 1 to Tk 100. Now, those who will buy dollars from the central bank will have to pay Tk100 for each US dollar. Read more: Exporters to get slightly higher rate of Tk 102 for one US dollar The central bank increased the dollar price within a month. Earlier, the central bank fixed exchange rate of US dollar at Tk 99 on December 5. It says that the price of the dollar has been increased in line with the market price. Central bank spokesperson Masbaul Haque told UNB that the dollar price has been increased to match the market price and it is part of regular initiative. Read more: Remittance: Bangladesh Bank tells banks to provide Tk 107 per dollar
Exporters to get slightly higher rate of Tk 102 for one US dollar
Exporters will get Tk102 against a US dollar to repatriate their export income in Bangladesh. The Association of Bankers Bangladesh (ABB) and Bangladesh Foreign Exchange Dealers’ Association (BAFEDA) announced the new dollar rate for exporters effective Monday. This is up by one taka from the earlier rate of Tk. 101 per dollar. Read more: FBCCI seeks dollars from reserves to import commodities for Ramadan The leaders of ABB and BAFEDA held a meeting on Sunday night to determine the price of the dollar. It decided to increase the rate for export income, but the price of the dollar was kept unchanged in the case of payment of expatriate income and import duties. As per the new decision, exporters will get Tk1.0 more against each dollar. And in terms of expatriate income, the dollar price has been kept unchanged at Tk 107. Apart from this, the value of the dollar will be Tk 0.50 more than the average of expatriate and export earnings in terms of payment of import duties. Read more: Remittance: Bangladesh Bank tells banks to provide Tk 107 per dollar At present, the price of the dollar in expatriate income is Tk107 and that for export income is Tk102. As a result, the average of expatriate and export income is Tk104.5. Adding Tk0.50 to this average will be Tk105 per dollar of import bills. The greenback has been in short supply since March last year following Russia-Ukraine war that jolted global economy. Read More: No dollar crisis in banks from next month: Salman F Rahman
Remittance: Bangladesh Bank tells banks to provide Tk 107 per dollar
Bangladesh Bank has asked banks to provide Tk 107 per US dollar inward remittance. A remitter will now get Tk 107 per dollar, even if they send remittance directly through banks. Currently, remitters are getting Tk 99.5 per dollar through the banking channel. Remittance flow through banks fell drastically in September and October. Read more: Bangladesh Bank will go slow in calculating reserves following IMF formula Apart from this, the banks will not charge any fee for remittance collection from now on. At the same time, in the current reality of foreign exchange reserves, banks have to open LCs with dollar resources from their own sources, Bangladesh Bank said to the commercial banks These instructions were given on Monday (October 31, 2022) in a meeting between the central bank and the Association of Bankers, Bangladesh (ABB), an association of banks' chief executives, and the Bangladesh Foreign Exchange Dealers’ Association (BAFEDA) Deputy Governor Ahmed Jamal and Kazi Sayedur Rahman were present at the meeting. Read more: Bangladesh Bank asks banks to stop ACU transactions with Sri Lanka ABB Chairman and BRAC Bank Managing Director (MD) Salim RF Hossain, on behalf of the banks, BAFEDA Chairman and Sonali Bank MD Afzal Karim, Mutual Trust Bank MD Syed Mahbubur Rahman, City Bank MD Masrur Arefin and others were present. Besides, the central bank has asked to increase the number of exchange houses outside the country to encourage remittance collection directly through banks by reducing the dependence on foreign exchange houses. In this case, the central bank will provide the necessary assistance. Banks have committed to implementing these decisions. Read More: How to safely send remittance to Bangladesh?
Dollar price in kerb market jumps to Tk120 amid short supply
The price of US dollars jumped to Tk 120 in the kerb market on Wednesday amid persistent short supply of the greenback against the growing demand from importers and those going abroad for education and medical treatment. The new unofficial kerb market rate of dollars was higher by Tk 20 to 25 than its official exchange rate against Bangladesh currency fixed by Bangladesh Bank. The greenback maintained its upward trend despite the central bank’s recent steps to punish six major private banks and 10 money exchange houses for irregularities in trading of US dollars. Read: BB warns exchange houses against manipulation of dollar price Last Monday the dollars sold in the kerb market at Tk116.60. Riding on high demand after Ashura holiday Wednesday, the price soared up to Tk 120, traders said. On Wednesday Abu Taher, a small businessman, went to the kerb market in Dilkusha to buy dollars he needed for his business trip abroad. The high price chased him away. “The price has been beyond my means,” he told UNB. “I’ll wait to see if it comes down.” Read Amid growing demand, banks sell dollar at Tk99 Taher said he offered to buy dollars at Tk 117, but there was no taker. While the soaring price has been attributed to short supply some traders blame it also on syndicates which manipulate the rate. Some syndicates which hold the dollars until if they get the desired price are partly to blame for the crisis, said Osman Goni, a vendor at the kerb market. Read Dollar price decreases in kerb market, after a hefty raise
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.
Woman held with 30,000 USD in Benapole
A woman has been detained at Benapole check post along with 30,000 US Dollar, BGB officials said Wednesday. The detainee is Jerin Sultana, 35, daughter of Nazim Uddin of Dendabar village in Savar’s Ashulia. Tipped off, a team of BGB-49 detained Jerin, who returned from India, when she was waiting to cross the check post after completing the customs immigration process on Tuesday evening. Read: Two held with 2.30 lakh USD at Dhaka airport Jashore BGB-49 Captain Lt. Colonel Shahed Minhaj Siddiqui said subsequent checking of her baggage led to the seizure of the US dollars. A case was filed against the detainee under Money Laundering Act with the Benapole port police. She was handed over to police, added the officer.
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.