The dollar market is unregulated due to Bangladesh Bank’s ‘carelessness’

file imageThere is widespread chaos in the deregulated dollar market. Bangladesh Bank and Bangladesh Foreign Exchange Authorized Dealers Association (BAFEDA) are playing hide and seek on the issue of dollar rate market. There are four types of dollar in the market besides the bank declared rate and also the verbal rate. Again, Bangladesh Bank has also given unwritten instructions to show market-based rates by setting separate rates for the money changers. The central bank is demanding these different rates based on the market. Economists claim that hundiwalas will get additional benefits by raising the price of remittance purchase in the bank and fixing the price to the money changers.

Bangladesh Bank fixed the price of Tk 111 per dollar in the interbank currency market on Thursday. On Wednesday also it was 110 taka 50 paisa. With this, for the sixth time in the current fiscal year, the rupee has depreciated against the dollar. In July, the price of the dollar was 108 taka 70 paisa and a year ago last November it was 101 taka 38 paisa.

PRI executive director Dr. Ahsan H. Mansoor said, ‘The policies and administrative measures taken by the central bank to control the price of the dollar are not working in any way. Dollars have different rates. Calling it market-based is the prerogative of Bangladesh Bank. The fixing rate cannot be called market based in any way. And because of the different rates in the market, the hundiwalas are getting new opportunities.

For the month of November, the foreign exchange trading body BAFEDA has increased the value of remittances and export earnings of commercial banks by 50 paise to the dollar. From November 1, banks will buy 110 taka 50 paise per dollar from exporters and sell it to importers at 111 taka. But you can buy remittance as much as you want. Even if you buy at a higher price, the highest price of the interbank dollar will be Tk 114. In October, it was decided to buy the dollar at 110 taka and sell it at a maximum of 110 taka 50 paise.

On Thursday, Motijheel, Dilkusha and Malibagh of the capital were seen, the declared buying rate of the dollar was 112 taka 50 paisa and the selling rate was taka 114. But the dollar is not matching at this rate. Salespeople are having a lazy time because of the dollar drought.

In this regard, the Secretary General of Money Changers Association of Bangladesh Sheikh Helal Sikder said, ‘112 taka 50 paisa and 114 taka dollar transaction do not match. It’s hard to do business. But the illegals are raising their heads again.’

Spokesperson and Executive Director of Bangladesh Bank. Majbaul Haque said, ‘Bangladesh Bank is taking one step after another to solve the dollar crisis. Currently, the different rates of the dollar are based on the market.