Bangladesh Bank spokesperson Md Serajul Islam said on Tuesday that the dollar's overall position to almost all other currencies was to blame for the recent extreme volatility in the forex market.
The value of the US dollar has increased not just in Bangladesh but also in neighbouring countries. According to him, it is higher in many South Asian countries than it is in Bangladesh.
The Bangladesh Bank executive director was speaking at a press conference on the recent decline in remittances and export revenues.
Bangladesh's inward remittances decreased by 10.84% to $1.54 billion in September from $1.72 billion in the same month last year, the third month of the 2022–2023 fiscal year. Remittance inflow dropped to its lowest level in seven months.
In comparison to the previous month of August, the decline was even more prominent, coming in at almost 25%.
It followed the banks' decision to pay foreign exchanges — like MoneyGram and Western Union, through which most expats send money — a maximum of Tk108 for each dollar on September 11.
They had previously offered exchanges up to Tk115 for a dollar.