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Bank & Finance - November 12, 2023

Bank MDs worried about dollar price

Selling Tk 127 in open market

Mahfuz Emran: Association of Bankers Bangladesh (ABB) and Bangladesh Foreign Exchange Dealers Association (BAFEDA) held an emergency meeting with Central Bank Governor Abdur Rauf Talukdar on Thursday (November 9) to control the market in the unstable situation of the dollar market in the country and to implement several decisions including sale of dollars at fixed prices. In the meeting, the MDs and chief executives of various banks sought the help of the central bank on an urgent basis.
Managing Directors (MDs) and Chief Executives of 21 banks were present in the meeting. After the meeting, ABB Chairman and Managing Director (MD) of BRAC Bank Salim RF Hossain said, ABB and BAFEDA agreed on a dollar trading rate on November 8. According to that rate, expatriates can’t pay more than Tk 116 per dollar of income. But banks have to sell to importers at Tk 111; Can’t take more than that. If anyone violates it, the regulatory body will take action against them. He also said that the dollar market is going through a very difficult situation. We are working together with all stakeholders to stabilize. Some banks are in more trouble, they are having trouble accepting this rate. That’s why I am taking a decision after discussing with everyone.
So that the market is not unstable.
Incidentally, several banks bought dollars at a price of Tk 10/12 more than the fixed rate. There have even been incidents of dollar buying at two to five takamore than the open market. Several banks bought dollars at rates ranging from Tk 123 to Tk 127.
Executive Director and Spokesperson of Bangladesh Bank Majbaul Haq said, there was no such problem in the last 6 months; The price of the dollar has never been Tk 124. Unleashing of additional stimulus has led to chaos in the dollar market. In this situation, the Central Bank has assured that all kinds of assistance will be provided in this regard.
In response to the question whether punitive action will be taken against those who bought dollars at a higher price, the spokesperson said, the big punishment is that they will have to sell dollars at Tk 111 with a loss of Tk 12. He said Bangladesh Bank will take strict action as per law if Tk 111 is not sold.
Meanwhile, in the open market, the price of the US dollar has increased by Tk 5-6 in a day. Today in money exchanges every dollar was sold at Tk 127. But a day ago its price was Tk 121-122.
The dollar market in the country has become volatile. All initiatives to overcome the dollar crisis are falling apart. Many banks are not getting dollars. Again, the banks which compete to buy dollars at Tk 124 are now being forced to sell them to importers at Tk 111.

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