Banks in Bangladesh have raised the price of the US dollar by 2 BDT, impacting both buying and selling rates. As of Wednesday, the banks are selling dollars for a maximum of 122 BDT per dollar for purposes like imports and debt repayment, up from 120 BDT the previous day. This new rate, effective from the first day of the year, marks a 2 BDT increase per dollar.

The hike in dollar rates is expected to raise import costs, leading to higher prices for imported goods and an additional strain on inflation. Additionally, the value of the Bangladeshi Taka has depreciated by 2 BDT, further intensifying economic pressure.

On Tuesday night, the central bank issued a circular allowing the market to determine dollar rates. Banks and clients can now negotiate rates, with banks consulting their authorized dealers before setting prices. Consequently, dollar prices across all sectors have risen. Most banks are selling dollars at 122 BDT, while some have even raised the rate to 123 BDT for cash transactions.

Export earnings and remittance rates have also increased by 2 BDT, with banks now purchasing dollars at a maximum of 121 BDT, compared to 119 BDT previously. The higher dollar rate has proportionally impacted other foreign currencies as well.

While the central bank capped the remittance purchase rate at 123 BDT earlier, some banks are selling dollars for imports at up to 124 BDT. The increased rates at banks have also pushed up prices in money exchange markets, where rates are capped at 123 BDT, but open market prices have soared to 128–129 BDT in some areas.