The US dollar exchange rate has been increased by Tk0.5 to Tk107.5 per dollar for repatriated export income.
This decision was taken at a meeting of the Bangladesh Foreign Exchange Dealers Association (BAFEDA) and Association of Bankers Bangladesh (ABB), the organization of top executives of banks, which are involved in foreign exchange transactions, held on Monday.
Since September 2022, a joint committee of BAFEDA and ABB has been tasked with setting the exchange rate of taka against the US dollar, the world’s reserve currency. It was meant to be a move towards a floating exchange rate, but it hasn’t worked out that way.
Economists have decried the prevalence of multiple exchange rates, and called for a move towards a single, unified exchange rate, but the BAFEDA-ABB committee has so far failed to realize that demand.
Following the announcement, the exporters will get Tk107.5 in the local currency against each dollar.
On the other hand, in case of expatriate income (remittances), the dollar rate remains unchanged at Tk108.5.
Meanwhile the maximum interbank rate will be Tk109 per US dollar, also unchanged.
The dollar crisis in the country became evident since March last year, in the wake of the Russia-Ukraine war.
To deal with this crisis, Bangladesh Bank fixed the price of the dollar exchange rate in the beginning, but this made the crisis worse.
Later last September, Bangladesh Bank officially withdrew from the responsibility of determining the exchange rate. This responsibility was given to ABB and BAFEDA, but it is done in consultation with the central bank.
Since then, these two organizations have been jointly fixing the dollar price for export and repatriation income and payment of import liabilities. Basically, these two organizations are implementing the decision of Bangladesh Bank.
