The dollar transactions in open market are now being done at Tk 125 to 127. The high price and crisis of dollar have spread instability in the economy as the businessmen become helpless. None knows when the dollar price will be stable. To overcome such crisis, the concerned persons suggested the government and Bangladesh Bank to increase supply of dollar in the market.
In this regard, the former finance advisor of caretaker government, Dr. ABM Azizul Islam told The Bangladesh Pratidin, “The government and Bangladesh Bank have to take initiative to overcome the crisis. So, remittance is needed to be increased and unnecessary import is needed to be decreased. In addition, the foreign assistance in development projects has to be available timely and dollar supply in the market has to be increased, in addition to decrease its demand.”
Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) President Md. Mahbubul Alam told The Bangladesh Pratidin, “The businessmen of the country have become helpless due to the dollar crisis. Many businessmen are in problems while opening letter of credit or LC. Each bank is buying and selling dollars at different rates. As a result, the cost of importing goods is increasing. The production cost of the industry is increasing as well. Dollar supply should be increased to overcome this crisis. Awareness should be raised among expatriates. Expatriates are being harassed while sending more dollars through banking channels. Bangladesh embassies abroad should play an active role in eliminating this harassment.”
Banks under the umbrella of Association of Bankers Bangladesh (ABB), the organization of private bank MDs and Bangladesh Foreign Exchange Dealers Association (BAFEDA) have a fixed dollar rate of Tk 111. It is being sold in the open market at Tk 126.50 to Tk 127. Industry stakeholders say that the increased demand for dollars in the economy after the corona epidemic, the Russia-Ukraine war has influenced the increase in dollar rate. The spread between the dollar exchange rate in the banks and the open market has been narrowed for the past few months. The price gap between banks and the open market has widened again due to lower dollar reserves in banks, price fixing and the increase in the number of students going abroad as well as increased transactions through hundi.
Reportedly, most commercial banks are not selling dollars to travelers. As a result, they are forced to go to the open market to buy dollars. Several money changers in Motijheel area of the capital told The Bangladesh Pratidin on Monday that they were selling dollars from Tk 126.50 to Tk 127.
Talking to the money changers, it has been known that people going abroad for medical treatment or travel purpose are struggling to buy dollars. The prices listed by the money changers for the foreign currency are Tk 113.30 for sale and Tk 111.80 paisa for purchase. However, this rate is not very acceptable. The central bank has taken various initiatives to control the price during the dollar crisis. The rate is fixed through ABB and Bufeda. Currently, ABB and Bufeda have fixed rate of Tk 110. 50. And the selling price is fixed at Tk 111. But to meet the demand, several banks are buying dollars from foreign exchange houses at the rate of Tk 122 to 124, and the dollar price for import is Tk 125.
Analysts say bank-fixed dollar prices have influenced to increase demand of dollar in the open market. They think that when expatriate Bangladeshis get Tk 127 per dollar in the open market, they will refrain from sending remittances through banks. According to BMET information, 9,89,685 workers went to different countries of the world from January to September this year. In the same period of 2022, the number of workers who went abroad was 8,74, 739 people. This is a record in terms of job creation abroad. Since 2022, despite the record of sending workers abroad, the income of expatriates is decreasing. Again, the country's foreign exchange reserves are also weakening. According to the Central Bank statistics, in the last 41 months, the lowest remittance of 134 million dollars has arrived in the country in September 2023. Earlier, the lowest remittance of $1.09 billion came in April 2020.
(The report was published on print and online versions of The Bangladesh Pratidin on November 13 and rewritten in English by Lutful Hoque)
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