BB allows banks to fix dollar price

US dollar billPixabay/

Bangladesh Bank has withdrawn the ceiling of dollar price earlier enforced to bring in remittance, the central bank's spokesperson Sirajul Islam has confirmed.

Bangladesh Bank on Thursday asked banks to fix the price of dollars in consistence with the market.

The banks have also been asked to remain alert so that the price of the dollar is not excessively increased all of a sudden.

Besides, banks have been asked to be careful so that foreign exchange houses cannot raise the price of dollars abnormally.

Speaking to Prothom Alo, Sirajul Islam said, "Inward remittance through the formal channel is falling. So there will be no fixed price of dollars to bring in remittance. Banks will fix rate of dollars in consistence with the market. This decision has been made effective today, Thursday."

As the price of dollar has been fixed at the market rate, in case of remittance, the price of dollar will be fixed similarly in case of import. Export income will not be encashed at the market rate. The rate the banks will buy dollars will sell at a little bit higher price.

Bangladesh Bank fixed the price of dollars on Sunday as it was increasing. The price of dollars was fixed at Tk 89.20 for banks in bringing remittance. After the fixation of the rate, the remittance fell. The exporters are not also enchasing the export bill. Several private banks fell into crisis to meet the import bill.

Under such circumstances, the Association of Bankers Bangladesh (ABB) chairman and Brac Bank managing director Selim R F Hossain discussed the overall situation with the stakeholders including Bangladesh Bank governor Fazley Kabir.

It is learnt the real situation was presented. Bangladesh Bank reached a consensus with all to withdraw ceiling of the dollar price.