US$ rate rises sharply in kerb market before Eid

Siddique Islam | Published: July 05, 2016 00:00:00 | Updated: February 01, 2018 00:00:00

Exchange rate of the US dollar against the local currency in the open market, known as kerb market, has increased substantially ahead of the Eid-ul-Fitr festival, traders said.
The US currency has reached its maximum rate of Tk 83.00 on Thursday, the last working day before the Eid vacation, as the demand for the greenback has increased significantly to meet the growing demand of the outbound passengers.
A section of people with their family members are flying abroad to celebrate the Eid festival. This has pushed the exchange rate of the US currency to such a level in the open market, they added.
"We've sold the US currency at Tk 82.20-83.00 on Thursday. But the rate started showing a falling trend from this week," a senior currency trader told the FE on Monday.
He also said the US currency was sold at Tk 81.50 on Monday following lower demand for the greenback.
"A number of people, including businessmen, are flying to different countries like India, Nepal, Bhutan, Thailand, Malaysia and Singapore to celebrate the ongoing nine-daylong Eid holiday," the currency trader noted.
Talking to the FE, a senior official of the Bangladesh Bank (BB) said the central bank has been informed about the higher rate of the US dollar in the kerb market ahead of the Eid vacation.
"The exchange rate of the US dollar has increased suddenly in the market following the rising demand for the greenback ahead of the Eid festival."
The central banker also said: "It's a temporary phenomenon. We expect that the rate will come down again to Tk 80.20-80.60 in the kerb market from the second week of July."
He also advised interested foreign currency buyers to purchase the US currency from the banks at a lower rate instead of the kerb market.
In the formal market, most of the state-owned commercial banks (SoCBs) were selling the greenback at Tk 81.10 and buying at Tk 80.20 on Thursday, a senior official of a leading SoCB told the FE.
He said most private commercial banks and foreign commercial banks offer higher rates for the US dollar than that of the SoCBs.
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