Buyers are not getting dollars, hoping for additional incentives in remittances

Dhaka: Instability is gradually increasing in the dollar market in the country. Dollars are not available at fixed rates in banks and money changers. In particular, the value of the dollar in the open market exceeded all previous records. Control of the dollar in the open market is now in the hands of black marketeers.

Last Thursday (November 9) the open market sold up to Tk 127 per dollar. Still, buyers are not getting the dollars they need. For the last several days, the transaction per dollar is up to 124 taka.

However, instability in the dollar market in the country is not new. This has been going on for a long time. Recently the dollar crisis has become more pronounced. The US government is struggling to solve the currency crisis. Dollars are being provided from reserves to meet the situation. Last week, the governor of Bangladesh Bank said that no more dollars will be sold from the reserve. In this situation, no initiative of the government to solve the dollar crisis seems to be working. But in this case remittances are giving hope. Remittances, one of the sources of dollar income, have started to increase during the crisis.

Recently, banks are giving additional incentives for buying remittances. Relatives of expatriates are getting additional incentive from every dollar of remittance. In this, the price of each dollar in remittance has become 115 rupees. However, because of the crisis, banks are secretly buying remittances at higher rates, which are higher than the open market rates. Also very close to hundi rates. On the whole, expatriate Bangladeshis are now sending remittances through banking channels, avoiding hundi (illegal route). It gives a new wind to remittances. Sector stakeholders say that this will have a positive impact on reducing the dollar crisis and increasing reserves.

In the first 10 days of this month of November, remittances of about 794 million dollars have arrived in the country. An average of about 8 crores (7.94 crores) dollars is coming every day. If this flow of remittances continues, it may exceed a record $2.3 billion by the end of the month. Last August, remittances crossed two billion dollars in a single month. According to the latest report of Bangladesh Bank, this information has emerged.

According to the data of the central bank, out of the 794 million dollars remittance received in the first 10 days of November, 4 million 92 million 40 thousand dollars came through the state bank, 1 million 94 million 50 thousand dollars through a specialized bank (BKB). Besides, 72 crore 32 lakh 60 thousand dollars came through private banks and 24 lakh 50 thousand dollars through foreign banks. No remittance has come through 10 banks during this time.

Industry stakeholders say that the highest remittances came through the banking channel in 2020 due to the closure of Hundi. In the outgoing fiscal year 2022-23, expatriates sent remittances of USD 2,161 million through banking channels. Which is the second highest ever in any fiscal year. Earlier, during the corona period, the maximum remittance of 2 thousand 477 million dollars came to the country in the financial year 2020-21.

Not more than 115 rupees per dollar of remittance: After the information of paying more than 122 rupees against each dollar in the case of remittances came to the media, the association of chief executives of banks ABB and association of foreign exchange banks BAFEDA held an emergency meeting. The two organizations took a new decision in a joint meeting last Wednesday (November 8). According to the decision, from now on, the dollar price cannot be paid more than 115 rupees in any case, including the Bank’s own incentives.

Meanwhile, the dollar crisis is not going away even with various initiatives. On the contrary, the price of the dollar is increasing. ABB and Bafeda increased export and remittance by 50 paisa on September 1 and fixed 110 taka 50 paisa on every dollar. With this, it is said that the banks will be able to give their own incentives in remittance. But most banks are not getting dollars at this price. Now many banks are buying dollars at the price of 122 taka 50 paisa.

AR