Dollar exchange rate nears Tk 92 even in banks

As the transmission of coronavirus subsided and the authorities eased the pandemic restrictions, Bangladesh witnessed a 46 per cent rise in imports in the first six months (July-January) of the fiscal year 2021-22.

On the other hand, the inward remittance plunged 18 per cent in the first nine months (July-March) of FY22 while the export volume increased 33 per cent.

All the facts show that a serious imbalance appeared in the income and expenditure sheet of foreign exchange.

That is why the exchange rate of the dollar rose to around Tk 92 in the banking channel, the bankers say.

Even the open exchange market is suffering from an imbalance in the demand and supply of dollar. The exchange rate here is quite similar to that of the banking channels. However, the greenback trading in the open market has no direct connection to the exports and remittances.

According to the Bangladesh Bank, the current exchange rate for dollar is Tk 86.20. But some banks are now taking Tk 90 to Tk 92 per dollar while paying on behalf of the importers. In particular, the consumer product importers are being subjected to the extra charge. In some cases, the banks are buying dollars from each other at higher prices.

Foreign trips, particularly to Saudi Arabia for performing Umrah, to India for treatment and to the United Arab Emirates for shopping, have increased recently. The tourists are taking dollars while going abroad, putting a pressure on cash dollars.

Experts said the current pressure on the greenback would be relieved if other currencies are made available as per demand of the tourists.

Money changers of Gulshan and Motijheel areas were seen selling dollar at Tk 91.70 on Thursday. The rate was down by Tk 0.10 in case of big transactions. A similar situation was found in the banks.

While talking to Prothom Alo, a number of money changers and open market currency traders said usually those who come from abroad bring dollars. This is the only source of cash dollar supply to the market.

Besides, some people keep dollars in reserve and often sell those. The foreign tourists also sell dollars and collect taka. But nowadays, people hardly come to sell dollars. Only the traders are selling dollars and this is why the price is mounting, they added.

Zakir Hossain, director of New Prime Money Changer in Motijheel, blamed the low supply of dollars to the market for the ongoing crisis.

“There is no supply of dollars. On the other hand, people now go to Dubai and India very often, which pushed up the dollar price,” he said, adding that he also sold dollars for Tk 91.70 on Thursday.

The dollar is being sold at a higher price at the banks too. It was learnt that the Eastern Bank Limited (EBL) bought dollar at Tk 90 and sold it for Tk 91 on Thursday. Agrani Banki bought the currency at Tk 89.60 and sold it for Tk 91.60.

The buying price of dollar was Tk 89.50 at Janata Bank while the selling price was Tk 91.50. The EXIM Bank bought dollar at Tk 89.40 and sold it for Tk 90.90, the Prime Bank bought at Tk 90 and sold for Tk 91, and the IFIC bought at Tk 90.40 and sold for Tk 91.60.

Bank officials said the cash dollar had nothing to do with exports and remittances. When someone comes to them to sell dollars, they buy it and later sell to others.

Meanwhile, many branches are failing to provide dollars as per demand of the customers. Branches in areas like Gulshan in the capital are relying on other branches for even $500. Many branches are not even doing dollar endorsement on the passports of outbound clients.

Some banks are now collecting dollars from expatriates paying Tk 3 more than the price fixed by the Bangladesh Bank.

It seems that the demand and price of dollar go hand in hand. As a result, consumer goods importers are buying dollar at less or more than Tk 90. Against such a backdrop, the commodity prices are feared to rise in the local market.

Shahadat Hossain, the deputy managing director of the Pubali Bank, told Prothom Alo that the increased remittances and exports have eased the pressure on the dollar.

However, the pressure on the cash dollar will be reduced only when people will bring a good amount of dollars with them from abroad. If the number of expatriates as well as tourists increases before Eid, the supply of cash dollars will increase. Then the pressure on the dollar will come down, he said.

* This report appeared in the print edition of Prothom Alo and has been rewritten in English by Misbahul Haque