Remittances increased due to deregulated dollar value

# The bank bought expatriate income for 124 rupees
# Open market cash dollar 126 taka
# Fixing the maximum rate of remittance at 116 rupees

There is a severe shortage of dollars in the country. That is why it is difficult to pay the import debt. In such a situation, banks are buying expatriate income from foreign exchange houses at an additional price of 12 to 14 taka. As a result remittance flow is increasing.

Bangladesh Bank’s updated report on Sunday (November 12) says that in the first 10 days of this November, expatriate Bangladeshis have sent remittances of 794 million dollars to the country through legal channels and banking channels. 7 crore 94 lakh US dollar remittances are coming daily.

Those related to the sector say that the banks are not able to pay the import debt due to the dollar crisis. So many banks are buying expatriate income at higher prices to deal with the crisis. On this occasion, foreign exchange houses have suddenly increased the dollar price of remittance from 12 to 14 taka.

As a result, at the beginning of this month, many banks were forced to buy expatriate income at 123 to 124 taka per dollar. In such a volatile situation, the maximum price of remittances has been fixed to control the upward price of the dollar. From now on expatriate income, including the bank’s own incentives, the dollar rate cannot be paid more than 116 rupees under any circumstances. As a result, the remittance flow may not increase much in the remaining days of this month.

A review of the data showed that the amount of remittances that arrived in the country on the 10th day of this month was 4 crore 92 lakh 40 thousand dollars through state-owned banks, 1 crore 94 lakh 50 thousand US dollars through a specialized bank, 72 crore 32 lakh 60 thousand through private banks. 24 lakh 50 thousand US dollars came through dollars and foreign banks.

According to the data of the Central Bank, last October remittances to the country reached 197.76 million US dollars. Earlier, the remittance inflow fell consistently in the first three months of the current financial year 2023-24. Expatriate income suffered a major setback last September due to the dollar crisis. In that month, the lowest expatriate income came to the country in the last 3 and a half years or 41 months, amounting to 1.34 billion dollars.

Earlier, in April 2020, $109 million in remittances came. In addition, in the first month of the current financial year, July, remittances came in the amount of 197 million 31 million 50 thousand US dollars. And in August comes 159 crore 94 lakh 50 thousand US dollars.

The dollar-crisis in the country has become evident since last March after the start of the Russia-Ukraine war. To deal with this crisis, Bangladesh Bank fixed the dollar price at the beginning. But it made the crisis more obvious. Later, in September last year, Bangladesh Bank stepped down from the responsibility of determining the price of the dollar. This responsibility is given to the organizations of the top executives of the bank – Association of Bankers Bangladesh (ABB) and Bangladesh Foreign Exchange Dealers Association (BAFEDA). They have been meeting to determine the dollar rate under the guidance of the central bank.

According to the latest bank announcements, the declared price of the dollar for buying expatriate and export proceeds is 110 taka 50 paisa. According to the latest data of Bangladesh Bank, dollar is trading at Tk 111 in interbank today.

Customers have to multiply Tk 126 to buy one dollar in cash at curb market or open market. Those who are going abroad for medical treatment, education or travel, have to spend up to Rs. 126 per dollar to buy cash. Whereas at the beginning of last week, the price of one dollar was 118 to 120 taka.

SI/KA