Dollar posts further hike in rate

In a latest move to bag more greenback, foreign-currency dealers and banks have once again hiked the exchange rate for both export proceeds and inward remittance.
The decision was made during a virtual meeting on Wednesday.
The revised rates take effect from today (June 01).
According to meeting sources, exporters can encash their export proceeds at Tk 107 instead of the current Tk 106.
On the other hand, Bangladeshi expatriates will get Tk 108.50 per dollar from the going rate of Tk 108.
When contacted, Association of Bankers, Bangladesh (ABB) chairman Selim RF Hussain confirmed this development to the FE.
He said the latest hike in exchange rates would help attract remitters to send more of their hard-earned foreign currencies through the formal channel. The revision comes as part of the plan of Bangladesh Bank, the country’s central bank, to reach a market-based rate as quickly as possible, according to him.
With adding 2.50-per cent incentive to Tk 108.50 per dollar for remitters, the actual rate will be over Tk 111 while the kerb-market rate is around Tk 111.50, said Mr Hussain.
“So, we’re very close to the market-based rate.”
Policy Exchange of Bangladesh chairman Dr M Masrur Reaz said the authorities were depreciating the local currency through raising the exchange rate under the current macro-economic situation.
But it is being done too frequently that may confuse the target groups, according to him.
“I think it should be done for a longer period of time so it gives a positive signal to the market…,” suggested Mr Reaz.

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