Banks hike dollar rate for exporters

Banks yesterday hiked the rate to purchase US dollars from exporters by Tk 1 to Tk 104 as part of efforts to set a uniform exchange rate in Bangladesh by June replacing the ongoing multiple exchange rates.

The Association of Bankers Bangladesh, a platform for managing directors of banks, and the Bangladesh Foreign Exchange Dealers' Association, a platform that implements foreign exchange rules in the market, took the decision.

Earlier, the two platforms took a decision to provide Tk 103.50 instead of Tk 103 for every dollar if the exporters fetch their proceeds of December and January by February this year.

"But commercial banks have raised the exchange rate for exporters significantly as we are on course to establishing a single exchange rate in the banking sector in line with the central bank's decision," said Syed Mahbubur Rahman, managing director of Mutual Trust Bank.

Banks provide Tk 107 for a greenback to mobilise remittances from exchange houses located abroad.

Importers have to buy the US dollar based on the weighted average exchange rate plus Tk 1.

Banks started to offer multiples rates for the US dollar since the middle of September 2022 in order to contain the volatility in the foreign exchange market resulting from higher imports than exports and remittance earnings.

Foreign currency reserves fell to $32.45 billion on February 22, down from $45.84 billion a year earlier, BB data showed. The taka has lost its value against the US dollar by more than 22 per cent during the period.