The supply of dollars has increased in the market due to a surge in remittances as well as a decrease in import costs, resulting in the taka making a regular gain against the greenback.
The dollar was selling for Tk120 in the kerb market last week.
It saw a big drop in just a week and was selling for Tk110 and Tk111 on Wednesday and Thursday, respectively, thanks to some timely measures taken by Bangladesh Bank.
Several money exchange officials told Bangla Tribune that they were buying dollars for Tk110 and selling for Tk112.
However, commercial banks are selling dollars for Tk106 to Tk108.
The greenback is expected to slide further in the upcoming week, meaning prices will go down in the kerb market.
“We are trying to normalize the market. In addition to releasing dollars in the market, monitoring has been beefed up,” Serajul Islam, Bangladesh Bank spokesperson and executive director, told Bangla Tribune.
He added that those involved in irregularities are being brought to book.
“Moreover, import has dropped and remittance has increased,” he said, adding that the dollar crisis will soon be resolved.
Several money exchange officials said that demand for the greenback has fallen and those who hoarded dollars might find themselves in troubled waters due to the capping of profits from the central bank on selling dollars.
A dollar trader in Dhaka’s Motijheel, requesting anonymity, said that on Wednesday he bought dollars for Tk109 and sold them for Tk110.
“On Tuesday, the buying price was Tk111 and selling price Tk113 to Tk114. On Sunday, the buying price was Tk112 and selling price Tk115,” he added.
Central bank measures to control market
In a bid to bring the market under control, the central bank undertook steps, including imposing several conditions for import. Moreover, policies were relaxed to increase remittance flow.
Bangladesh Bank also held meetings with the banks and money exchange organizations. In addition, drives were conducted and steps taken against those involved in dollar irregularities.
Moreover, the managing directors of six banks--- Dutch Bangla Bank, Southeast Bank, Prime Bank, City Bank, Brac Bank and Standard Chartered Bank --- were served show-cause notices over dollar manipulation. Before that, the treasury chiefs of the banks were asked to step down.
The central bank gave orders that the profits from dollars cannot be counted as bank income.
Similar to banks, money exchanges have also been given a profit limit for banks. Their rates can vary with banks by Tk1.50 at the maximum. Banks can sell dollars for a profit of Tk1 only.
The decision was taken during a meeting between Bangladesh Bank and Bangladesh Foreign Dealers Association.
Previously, banks and exporters’ power to hold dollars was curtailed in a bid to increase supply in the market on May 10.
Orders were given to cash in dollars within a day of import and restrictions were given on exchanging dollars bought from one bank and exchanging them in another.
The central bank also sold dollars worth two billion in the first one-and-half months of the 2022-23 fiscal.
Dollar prices drop in banks
Dollar prices have dropped in banks as well. City Bank sold dollars for Tk109.50 on Tuesday and Tk108.50 on Wednesday.
On the other hand, in the last few days, state-run Sonali Bank and Rupali Bank sold dollars for Tk104. Janata Bank sold them for Tk 104.25 while private-run Eastern Bank and SIBL sold dollars for Tk107 and Tk105 respectively.
