Bangladesh Bank (BB) suddenly changed the US dollar rate at the interbank exchange rate on Tuesday. The central bank says that the selling price of the dollar in interbank transactions on Tuesday was Tk106.15. And in the interbank transaction, the purchase price of the dollar is Tk101.67. But it is not the central bank rate, it is the dollar trading rate between the banks themselves. The price at which banks trade dollars is called the interbank rate. Read: Uniform rate: Tk 108/dollar max for remittance, Tk 99/dollar for export income from tomorrow Recently, the price at which the central bank used to buy and sell dollars was referred to as the interbank rate. The BB has been publishing that price on the website. But today (Tuesday) the central bank suddenly changed the price. Last Sunday, the selling price of the dollar was shown at Tk95 on the website. Yesterday (Monday), the price of the dollar was increased by Tk1 to Tk 96. Today (Tuesday) the selling price of the dollar is shown on BB’s website as more than Tk106. And the purchase price is showing around Tk102. However, even today, the BB has sold $4.5 crore from forex reserves at the rate of Tk96. Read: Illegal dollar trade: BB summons account details of 28 exchanges The central bank officials say that the price at which banks will buy and sell dollars will be the interbank rate. That will be published on the website. But the central bank will not sell at this rate. The BB Executive Director and Spokesperson Md Sirajul Islam told UNB, "The price of the dollar was increased to Tk 96 yesterday. Even today the central bank sold dollars at this price.” He is not aware why the price of dollars is being shown so high on the website.

Bangladesh Bank (BB) has announced a refinancing scheme of Tk 25000 crore for cottage, micro, small and medium entrepreneurs. Under this scheme, banks and financial institutions can disburse loans through their own branches, sub-branches, agent banking, and mobile financial services (MFS). A BB circular in this regard was issued on Tuesday and sent to the top executives of banks and financial institutions. Read: BB increases interest rate on borrowing from EDF The circular stated that if it is possible to create opportunities to get money on easy terms for the entrepreneurs engaged in cottage, micro, small and medium industries or CMSME sector, it will accelerate the economic growth. The title of the scheme is 'Refinance Scheme against Term Loan in CMSME Sector' will be supported by funds from own sources of the central bank. The funds will be increased if necessary. Initially, the duration of the refinancing scheme will be three years. Read FY23: Bangladesh Bank raises agro credit target to Tk30,911 crore

Bangladesh Bank (BB) has raised the interest rate on borrowing from the Export Development Fund (EDF). The central bank on Wednesday fixed 1.0 per cent per annum to 1.5 per cent for Authorized Dealers (ADs) while the ADs will charge 3.0 per cent per annum on their USD loan disbursement to manufacturer-exporters. The Foreign Exchange Policy Department of BB on Wednesday issued the circular and all authorized dealers in foreign exchange for immediate effect of the notification. The size of EDF was increased to $ 7 billion from $ 6 billion to meet the growing demand among exporters in the immediate past fiscal year. In June 2021, the EDF went up to $ 6 billion from $ 5.5 billion, while the fund rose to $ 5.5 billion from $ 5 billion in March of the year. It increased to $ 5 billion from $ 3.5 billion in April 2020. Read: BB lets dealers to open foreign currency deposit accounts The growing demand and low-interest rate of lending from the EDF prompted the central bank to increase the size of the fund. Earlier on April 7, 2020, BB lowered the interest rate to 2 per cent on its EDF for the first time following a downturn in the country’s economic activities created by the Covid-19 pandemic. Before that, the interest charge was a six-month London Interbank Offered Rate (LIBOR) plus 1.50 per cent. Bangladesh established EDF in 1989, intended to facilitate financing in foreign currency for input procurements by manufacturer-exporters.

Bangladesh Bank (BB) has instructed banks to keep open their  branches and sub-branches in nearby areas of cattle markets in Dhaka north and south city corporations on Friday and Saturday. The central bank set banking hours in these areas from 10.00 am to 8.00 pm on July 8 and 9 (Friday & Saturday) to facilitate the sacrificial animals’ traders. The Banking Regulations and Policy Department (BRPD) of BB on Tuesday issued a circular in this regard and sent to the top executives of all the scheduled banks to take necessary measures. Read: BB re-fixes mobile financial service money transaction limit The circular stated that cattle traders are arriving in the capital from different parts of the country and banks have to arrange secured transfers of their money through banking service. The BB also instructed banks to set bank booths at the cattle markets to secure transactions of money. Banks are asked to maintain Covid-19 health guidelines at  the bank booths as infections are increasing, the circular stated.

Bangladesh Bank (BB) will announce monetary policy for the new fiscal year (2022-23) on June 30 amid challenges of growing inflation rate and taka weakening against US dollar. BB’s outgoing governor Fazle Kabir will announce the monetary policy physically through a press conference though it was announced virtually or just uploaded on the central bank website in the last two years due to the Covid-19 pandemic. Read:More Bangladeshis are becoming rich despite pandemic and inflation: BB Usually the BB formulates and publishes monetary policy for controlling inflation and achieving the desired GDP growth. Monetary policy is very important in the financial management of the country. Through this, a plan is presented to increase or decrease the internal debt, money supply, internal resources, and foreign resources. The BB has been facing several challenges this year to prepare a monetary policy as the time is very challenging for price hike of energy and essential commodities as well, said a senior official who works at the monetary policy department of BB. Chief Economist of BB Md. Habibur Rahman told UNB that the government has set interest rates on bank loans and the exchange rate of dollars. “There is nothing new in this year's monetary policy, but controlling the inflation rate will be given priority,” he said. Experts said the government borrowing from banks and other domestic sources to make up the budget deficit will create a pressure on bank deposit and in the monetary policy should include measures to increase investment and employment.

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.

Bangladesh Bank (BB) has amended the bank officials'overseas travel restrictions a day after  issuing the notification. The central bank's latest guideline in this regard has allowed bank officials’ travel abroad for Hajj-Umrah, treatment and other emergency purposes at his own cost. Also read: BB depreciates taka by Tk 0.40 against US dollars  The BB instruction stated, "Travel ban was imposed from Bangladesh to abroad through a circular letter dated 22 May 2022, but restrictions were also imposed on travel to personal initiative also. Personal travel from Bangladesh for special needs, essential treatment, on its own funds will be out of the scope of the ban”. The Banking Regulation and Policy Department (BRPD) on Monday (May 23) issued the amendment of the notification and allows travel abroad for Hajj-Umrah, treatment and other special needs. Besides, foreign nationals working in the bank can go to their home country and officials working in the Bangladesh branch of the foreign banks can go to the head office. Also read: BB moves to encourage greater flow of remittance to boost forex They will also be able to participate in training, meetings, seminars, workshops and study tours funded by foreign organizations. The BB has banned travel abroad for the officials of the central banks, private-state owned banks, financial institutions and leasing companies to curb the spending of forex.

Finance Minister AHM Mustafa Kamal at a meeting with Bangladesh Bank (BB) governor Fazle Kabir and other senior officials of the ministry asked them to work for boosting stock market investment. He said the economy of Bangladesh stands on a strong base and growth position is very positive, but the unstable situation of the stock market is not acceptable. Also read: Finance minister directs regulators to boost investment in stock market Despite the Russia-Ukraine war and Covid-19 pandemic the economic growth of Bangladesh will continue, he said. Kamal on Sunday gave several directives to the BB and Bangladesh Security and Exchange Commission (BSEC) for immediate implementation to boost the stock market In order to attract capital in the market, state-owned investment institution ICB has been instructed to keep the bank's investment outside the investment limit or exposure limit of this institution in the capital market. It has also been decided to double the size of the Tk150-crore funds given to the ICB for small investors, which had expired. Also read:Finance minister hints at hard decisions due to Russia-Ukraine war The finance minister asked for increased tenure of the funds along with doubling the funds’ size. The investments will be made from this fund from Monday, the finance ministry sources said. Finance Secretary Abdur Rauf Talukder and Secretary of Financial Institutions Division Sheikh Mohammad Salim Ullah were also present at the meeting.

Bangladesh Bank (BB) in clarification said the non-resident Bangladeshis can open foreign currency accounts (FCA) in any scheduled banks in the country and any amount of money can be deposited to those accounts without the BB permission. If the expatriates bring any amount of cash, dollars or other foreign currencies during arrival, they can deposit it to their bank accounts and exchange it in local currency. The expatriates can deposit USD $ 10,000 to their accounts without declaring it to the customs authorities. Also read: BB raises LC margin integrating foreign currencies The BB issued a notification in this regard on Tuesday to inform people and remove the confusion over free transferring of foreign currency abroad. Under the existing foreign exchange transaction policy, Bangladeshis living abroad can operate private foreign currency accounts or non-resident foreign currency deposit accounts in the country’s banks. Any amount of foreign currencies sent from abroad or brought to Bangladesh from abroad can be deposited to these accounts without question. Also read:BB struggles with dollar demand as LCs worth $ 68.36 billion open in 9 months Besides, expatriates during departure can take abroad the money with them in the form of cash, a maximum amount of $ 5,000 and other foreign currency as required subject to the status of balance in the account. The status of these foreign currency accounts operated in the name of expatriates or non-resident Bangladeshis can be freely sent abroad with interest. In this case, no approval of Bangladesh Bank is required.

Bangladesh Bank (BB) has changed the LC margin and asked banks to preserve 50 to 75 percent LC margin for imports, suspending a directive issued on April 11 in this regard. Banking regulations and policy department (BRPD) of BB on Tuesday issued the new directive with effect immediately which will remain in force until further notice. Also read: BB struggles with dollar demand as LCs worth $ 68.36 billion open in 9 months Russia-Ukraine war and considering changing global situation the BB has changed the earlier LCs margin for better management of loans and integrated foreign currencies, said the directive. The central bank has fixed a margin for opening letter of credit (LC) at a minimum 75 percent for motor cars, home appliance electronics and electrical products. Also read: BB enhances working capital loans limit for export-import trading Minimum 50 percent margin has been asked to be preserved to open LCs for importing all other goods and products excluding baby food, essential food items and fuel, life-saving medicines, local and export-oriented industries and agricultural related products.