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Bangladesh raises dollar price for export proceeds, lowers it for remittances

Mount Equity Group Tokyo Japan > News > Markets > Bangladesh raises dollar price for export proceeds, lowers it for remittances

For importers, the dollar rate to open letters of credit will be Tk 1 more than the weighted average of the rates fixed for export proceeds and remittances. 

The dollar began climbing in mid-2021 due to a supply crunch of the currency. The crisis went deeper towards March this year, prompting the central bank to come up with several measures to curb the dollar’s unprecedented gains. 

In a meeting in May, the BAFEDA and ABB agreed to fix a ceiling to set a uniform interbank dollar exchange rate to ease the situation. 

On Jun 30, Bangladesh Bank reintroduced the floating rate and regularly devalued the taka against the dollar while selling large amounts of the currency to meet the demands. 

The banks were supposed to hold discussions to propose a dollar exchange rate under the supervision of the central bank. 

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