Tk 108.5 for remittance Tk 107 for export proceed

Dollar hiked again

Industry Desk: The dollar rates for remittance and export proceeds both have been increased, with the new rate for remittance set at Tk108.50 and for export proceeds Tk107.
The new rates are set to go into effect from today, ABB Chairman and Managing Director of Brac Bank Selim RF Hussain told.
The decision to increase the rate was taken at an online meeting of the Association of Bankers Bangladesh (ABB) and the Bangladesh Foreign Exchange Dealers Association (BAFEDA) yesterday.
Managing directors of public and private banks of the country participated in the meeting.
Earlier on April 30, the dollar rate for remittance and export proceeds was increased by Tk1 to Tk108 and Tk106 respectively.
The central bank said $1.42 billion in remittances arrived in the first 26 days of May.
For the last two months, bankers have claimed that remittances are decreasing due to pressure from the central bank to bring remittance at the dollar rate fixed by BAFEDA.
However, if the rate was high, then remittances would have been as high as $2.5 billion in a month, according to bankers.
In September last year, the BAFEDA and ABB, in a joint meeting, decided to fix the dollar rate of remittance and export proceeds at Tk108 and Tk99 respectively.
The dollar rate for remittances was later brought down by Tk1 to Tk107 last November.
Meanwhile, the dollar rate for export proceeds was increased gradually, but the rate for remittance was not increased for the last six months.
However, the banks brought remittances at a rate higher than the fixed one.
Bankers offered as high as Tk114 against the dollar for remittances in March.
When the news was published in The Business Standard under the title “Banks offer higher than fixed rate to remitters to build forex”, the Bangladesh Bank was alerted.
At a bankers’ meeting in the first week of April, the central bank strictly instructed commercial banks not to offer a rate higher than the rate set by the Bangladesh Foreign Exchange Dealers Association (BAFEDA).
The central bank also held a separate meeting with ten banks that were identified for ignoring the BAFEDA rate.
Although there were more than 20 banks who offered higher rates then, most of the banks gave Tk107 after the meeting, which affected the country’s remittance income afterwards.
With the latest hike for exporters, the dollar price for export proceeds has been increased for the 7th time since September last year.
Managing director of a bank told that due to the increase in the dollar rate for remittances and export proceeds, banks’ cost for dollars will also increase. As a result, it will slightly increase the value of the dollar in import settlement.