BB fixes interbank exchange rate for USD at Tk 106

The Bangladesh Bank in a sudden move has revised the interbank exchange rate for the US dollar to Tk 106.15.

According to the central bank, the selling price of dollars in interbank transactions was Tk 106.15 on Tuesday while the purchase price was Tk 101.67. But it was not a rate fixed or implemented by the central bank, rather it was fixed by the scheduled banks.

Now, the apex monetary regulatory body mentioned the exchange rate of scheduled banks as its official rate on the website. Earlier, the central bank used to estimate the exchange rate as per its own transactions.

The Bangladesh Bank showed the selling price for dollars at Tk 95 on its website on Sunday. It hiked the rate to Tk 96 on Monday and pulled it up to Tk 106.15 on Tuesday.

However, the central bank sold USD 40 million from its forex reserve at a rate of Tk 96 on Tuesday.

According to the website of Bangladesh Bank, the exchange rate of taka and dollar has been determined by the banks based on supply and demand and rates provided by the Bangladesh Foreign Exchange Dealers Association (BAFEDA).

The central bank will not engage in regular dollar trade, but will intervene as per market demand.

The BB officials said the price at which the banks will buy and sell dollars will be the interbank price, but the central bank will not follow the rate.

Central bank executive director and spokesperson Serajul Islam told Prothom Alo, "The dollar price was increased to Tk 96 yesterday (Monday). Even the central bank sold dollars at this price today (Tuesday). I still do not know why the price is showing so high on the website.”