Bangladesh Bank’s Directive to Control Remittance Dollar Rates
- Update Time : 10:04:08 am, Wednesday, 25 December 2024
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The Bangladesh Bank has directed the country’s banks not to purchase remittance dollars or foreign currency at a rate higher than 123 Taka. This directive was issued following a meeting with 13 banks on Tuesday, December 24. After receiving a phone call from the central bank on Monday, the price of the dollar dropped by 3-4 Taka in just one day. On Tuesday, most banks collected remittance dollars at the rate of 123 Taka, although some banks were still offering rates as high as 124 Taka, according to senior officials. The directive comes after a period of instability in the dollar market over the past two years. The situation had stabilized during the last four months after the interim government took office, but the market began fluctuating again recently. Bankers explain that the sudden rise in the price of remittance dollars in early December was due to certain government and private sector banks purchasing dollars at higher rates to meet the demand for imported goods. This led other banks to follow suit. However, after identifying 13 banks involved in buying dollars at inflated rates from foreign exchange houses, the Bangladesh Bank sought explanations from these institutions, which included both state-owned and private banks. As a result, many banks reduced the remittance purchase rate.
