Banks to lower dollar prices for the first time
For the first time in many years, various banks in the country have decided to decrease the price of the dollar by Tk 0.5 from Thursday for purchasing remittance and export earnings. Additionally, the selling price of dollars to importers will also decrease by Tk 0.5.
This decision was made in a meeting held by the Bangladesh Foreign Exchange Dealers Association (BAFEDA) and the Association of Bankers Bangladesh (ABB) on Wednesday evening.
The online meeting lasted only 5 minutes.
As per the decision, the purchasing rate for remittance and export earnings will be Tk 110, reduced from Tk 110.5.
For meeting import liabilities, the dollar price can be set at Tk 110.5, down from Tk 111.
However, banks can provide an additional 2.5 per cent incentive on remittance, allowing beneficiaries to receive a maximum of Tk 115.5 per dollar for sending remittance, inclusive of the government's incentive.
The two organisations, BAFEDA and ABB, have been regularly setting the exchange rate for the dollar based on the supply and demand in the market, primarily in coordination with commercial banks.
Since September of the previous year, they have been tasked with determining the dollar price periodically, following the guidance of the Bangladesh Bank.
However, despite their responsibility for setting the dollar price, it has not seen a reduction compared to the rates before their involvement.
During the meeting, BAFEDA Chairman and Sonali Bank Managing Director Afzal Karim, along with ABB Chairman and BRAC Bank Managing Director Salim RF Hossain, explained that imports have decreased while exports are on the rise.
Moreover, there is currently no current account deficit. In light of these factors, the decision to reduce the dollar price by Tk 0.5 per dollar was made.
Approximately 40 managing directors (MDs) from various banks and senior officials attended the meeting.