Bangladesh's top bankers agree to set uniform rates in foreign-exchange dealings to help restore stability on the country's forex market, with Tk 108 cap per dollar for remittance netting.
Under the decisions reached with the regulator, all the authorized dealer (AD) banks will offer maximum Tk 108 per dollar to overseas exchange houses for receiving inward remittance instead of Tk 113.
The banks are allowed to fix rate at Tk 99 for procuring all types of export proceeds from the exporters, down from maximum Tk 102.
In case of settling import-payment obligations, the banks will keep highest Tk 1.00 as spread over the weighted average of the exchange houses and the exporters' rates.
This weighted-average rate will be calculated on a five-day rolling average basis by each bank based on its actual cost if the US dollar buying is from inter-bank market, excluding from the central bank.
The decisions were reached unanimously at a joint meeting of the Association of Bankers, Bangladesh (ABB) and the Bangladesh Foreign Exchange Dealers' Association (BAFEDA) held at the Sonali Bank Limited headquarters in Dhaka on Sunday.
All the AD banks have been asked to follow the uniform rates in foreign-exchange dealings mandatorily from today (Monday), according to a joint statement, signed by Chairman of BAFEDA Md. Afzal Karim and ABB Chairman Selim R F Hussain. The statement was issued just after the joint meeting was over.
"Any deviation from the above by any bank will be viewed and dealt with strictly by the regulator," the statement warns.
The BAFEDA and the ABB expect that when all export proceeds and all inward remittances are bought at Tk 99 and Tk 108 respectively, and the selling rate is calculated on the weighted average cost of these two, an 'interbank rate' will eventually emerge around this weighted average cost line.
The instrument of accord has already been sent to managing directors (MDs) and chief executive officers (CEOs) of all the AD banks, requesting them to ensure implementation of uniform rates in foreign- exchange dealings properly.
A copy of the statement was obtained by the FE.
In the statement, the two associations included an eight-point guideline for dealing with different types selling and buying of the greenback.
"We're committed to executing the exchange rates properly with a view to providing better service to the customers," BAFEDA chairman Afzal Karim told reporters after the meeting. "We want to stabilize the forex market."
Regarding the uniform rates, ABB Chairman Selim R F Hussain said: "These are market-determined exchange rates."
He also said the rates will be changed time to time in tune with the overall market situation.
The country's top bankers' latest moves come following a joint meeting with high-ups of the Bangladesh Bank (BB) at the central bank headquarters in the capital on Thursday.
At the meeting, the bankers discussed different issues, like uniform rates for exporters and overseas exchange houses, to manage the ongoing volatility on the forex market in tandem with global market tantrums.
Actually, the local currency is maintaining a depreciating trend - mainly due to higher outflow of foreign exchange compared to the inflow in the last few months.
In the meantime, Bangladesh's forex reserves have maintained a downturn in the last couple of months - following higher import-payment obligations amid global price rises.
The forex reserves stood at $37.12 billion Sunday against $37.06 billion of the previous day.
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