The trend of rise in dollar price in the kerb market has decreased within a day. The price of dollar was Tk 100 or below it in the market on Wednesday. However, there were not many dealings due to the supply crunch and demand.
Meanwhile, the banks are still bringing in remittance and cashing export bills at more than Tk 95 per dollar. As a result, the importers are being forced to spend Tk 96-97 for every dollar. Amid this, Grameenphone, the largest telecommunication service provider in the country, is set to remit US $11 million (1 crore and 10 lakh) of its profit abroad. Several banks have shown interest in the dealing, setting the price at Tk 98 for each dollar. This is also responsible for the rise in dollar price in Bangladesh.
In this context, executive committee of Bangladesh Foreign Exchange Dealers Association (BAFEDA) held a meeting at its Kakrail office in the capital city on Wednesday. BAFEDA Chairman and Sonali Bank Managing Director Ataur Rahman Prodhan chaired the meeting. The meeting has decided to send a letter with some recommendations to the central bank, Bangladesh Bank, urging to supply more dollars.
The current dollar crisis has emerged as the additional income through export and remittance earnings is not being enough to meet import costs. For the last few months around US $1 billion deficit per month has been created. The import cost has soared due to hike in prices of fuel, luxury goods, and raw materials and shipping costs.
Responding to the crisis, Bangladesh Bank has already been discouraging importing luxury items while the government has cancelled all foreign trips of its officials. The dollar price in the kerb market increased to Tk 102 on Tuesday.
Market situation
Speaking to Prothom Alo, Arifur Rahman, proprietor of a money exchange in Uttara, said the price of dollar was Tk 100 on Wednesday. Dollar traders in Motijheel said many people came to buy dollars until Tuesday. Many people have been collecting dollars thinking they would sell those if they get more price. This also has led to the crisis.
However, the demand was not much on Wednesday. Police also has beefed up its surveillance. As a result, the dollar priced has plunged a bit.
Meanwhile, the banks that are paying more taka per dollar are getting more remittance income. Though, according to the central bank, dollar price is Tk 87.5, a large private bank on Wednesday told exchange houses abroad and banks they would give Tk 89 for each dollar.
The same is in case of cashing export bill. Exporters are thronging to the banks that are giving more price for cashing. The large exporters have been taking the benefit. As a result, the importers are being forced to buy dollar at a higher price. For this the price is sometimes touching Tk 97.
Speaking to Prothom Alo, Shafiul Alam Khan Chowdhury, Managing Director of Pubali Bank said, “We have been trying to cover the expenses through our own income. But the problem is many people are holding the export bills hoping to get higher price.”
Bangladesh Bank on Wednesday sold $90 million from its reserve to cover the government’s import expenses. As a result, the current amount of reserve is US $42 billion.
Bankers have been advising to those who want to travel abroad, to use debit or credit cards instead of dollars. In that case, the price of dollar is less than Tk 88.