Banks reduce dollar rate by Tk 0.5

Two banking forums made the decision to reduce the buying and selling rates of the US dollar by Tk 0.5 starting tomorrow, citing an improvement in the country‍‍`s overall current account—which keeps track of its transactions with other countries.

The Bangladesh Foreign Exchange Dealers‍‍` Association and the Association of Bankers, Bangladesh decided to buy the greenback at Tk 110 from exporters and remitters and sell the US dollar at Tk 110.5 each starting tomorrow, according to a few attendees of the meeting.

Up until today, banks were supposed to buy US dollars at Tk 110.5 and sell them at Tk 111. However, most banks did not follow this official rate because they were having trouble getting the dollars from exporters and remitters at the agreed-upon rates due to a shortage of dollars and anticipates of further depreciation of taka. 

Despite paying up to Tk 116 per dollar, including incentives provided by the government and the banks from their own expenses, bankers said that they were having trouble getting foreign exchanges from remitters. Meanwhile, importers have been complaining that they had to spend more money to open letters of credit than the prescribed rate of Tk 111.

The decision resulted in in contradiction comments, with several bank treasury heads saying that they want to observe how the market reacts.
Economist Ahsan H Mansur, on the other hand, called the decision "a laughingstock," claiming that the taka is not in a position to appreciate right now.