Two top bodies of bankers on Wednesday requested lenders not to offer more than Tk115 per US dollar when conducting the exchange with Bangladeshi migrants working abroad.
The decision comes against the news of some banks offering as high as Tk124 for a greenback in an effort to encourage remitters to send their earnings home through legal channels instead of informal money transfer systems known as "hundi".
The higher rates are also an attempt to mitigate US dollar shortages at banks, local media reported.
The Bangladesh Foreign Exchange Dealers' Association (BAFEDA) and Association of Bankers' Bangladesh (ABB) had fixed it at Tk111 per US dollar.
At the meeting on October 31, the two bodies decided to buy each US dollar from exporters at Tk110.5 from the next day, effectively hiking the then rate by Tk0.5.
The Bafeda and ABB also said that banks may, at their own options and cost absorption, continue to practice offering incentives for buying wage earners remittances.
At a previous meeting on October 22, both the associations decided to let banks offer a 2.5% higher purchase rate at their own expense when availing US dollars from remitters.
They were, however, asked to maintain proper records for verification by the banking regulator.
The development comes at a time when Bangladesh's foreign exchange market has been suffering from volatility and taka is losing its value to foreign currencies, namely the US dollar, as inflow continues to lag behind the overall outflow for imports and other payments.
The Taka lost nearly 30% in value over the last one and a half years.
Inflow of remittance, a major source of foreign currency for Bangladesh, declined 4.3% year-on-year to $6.8 billion in the July-October period of the current fiscal year of 2023-24, showed Bangladesh Bank data.