Bangladesh Foreign Exchange Dealers Association (BAFEDA) and The Association of Bankers, Bangladesh Limited (ABB) have revised the exchange rate by increasing the dollar price by one taka in terms of export earnings and remittances.
This decision was taken in a meeting between Association of Bankers Bangladesh (ABB) and Bangladesh Foreign Exchange Dealers Association (BAFEDA) on Sunday (April 30).
Banks will offer Tk106 for export proceeds and Tk108 per dollar for remittance from Tuesday when the new rate will come into effect.
The meeting held at the head office of Sonali Bank was attended by BAFEDA Chairman and Sonali Bank Managing Director (MD) Md. Afzal Karim, ABB Chairman and BRAC Bank Managing Director (MD) Salim R. F. Hossain along with other commercial banks’ managing directors.
Regarding the meeting, Afzal Karim said, “It was decided to fix the difference between export earnings and remittances at least Tk2 in the meeting. Banks have been asked to exchange export proceeds at Tk106 and remittance at Tk108 from Tuesday.”
BAFEDA and ABB have been officially setting sector-based rates since September 11 last year in bringing foreign currency into the country through banking channels. Earlier, Bangladesh Bank left the exchange rate of foreign currency to the market on June 30 last year.
At that time, the dollar exchange rate for remittances was set at a maximum of Tk107, which was increased by Tk1 more in Sunday’s meeting.
The dollar rate for opening of LC on importing goods will be determined as before by averaging the exchange rates of remittances and exports. In this case, banks can charge an additional Tk1 more with the highest average rate; that is, the spread limit will be Tk1. This is the interbank dollar exchange rate.
The dollar-crisis in the country has become evident since March last year after the start of the Russia-Ukraine war. To deal with this crisis, Bangladesh Bank fixed the dollar price at the beginning. Later, in September last year, Bangladesh Bank stepped down from the responsibility of determining the price of the dollar. This responsibility is given to ABB and BAFEDA. Since then, these two organizations have been jointly fixing the dollar price for export and remittance income and payment of import liabilities.
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