Bangladesh Bank has temporarily withdrawn from fixing the
dollar rate through the order. One decision after another did not reduce the
crisis but increased the complexity. As a result, moving away from the previous
position, they said that the price of the dollar will be determined based on
demand and supply.
Banks themselves will determine this price. The dollar price
will be different in every transaction including expatriate and export
earnings, import bill settlement. But all banks will buy and sell dollars at
the same price per transaction. And the profit in trading will be a maximum of
one rupee.
Banks will inform Bangladesh Bank of this dollar price on a
regular basis. Bangladesh Bank will monitor it and regularly exchange
information with the banks. This decision has been made to overcome the dollar
crisis and market volatility.
Bangladesh Bank held a meeting with Association of Bankers
Bangladesh (ABB) and Bangladesh Foreign Exchange Authorized Dealers Association
(BAFEDA). Officials of Central Bank and Commercial Bank agreed the decision in
the meeting.
However, people related to the sector say that if the demand
for dollars increases, there is no way to buy at a higher price. If the central
bank provides dollar-backed support to all banks on time, the new decision will
come into effect. Otherwise this decision will not last long. Earlier,
Bangladesh Bank had withdrawn its decision to fix the dollar price. There is
nothing surprising if this is the case.
The dollar market has been volatile since last May. Demand
for dollars is not being met by expatriate income and export earnings as import
costs rise. It has created a crisis. Apart from this, there are dollar
expenditure in various sectors including government and private debt repayment,
ship and air fare, foreign bills in technology and service sector, education
and medical. As a result of various measures to reduce imports, loan openings
have decreased, expatriate and export earnings have also increased.
The central bank is struggling to keep the price of the
dollar stable. Meanwhile, the price per dollar has been increased from 86 to 95
Taka. Although the dollar is being traded in the banks at a much higher price.
Bangladesh Bank has sought an explanation from 13 domestic
and foreign banks for making excessive profit in dollar trading. Of these,
notices have been given to the MDs of six banks, the head of the treasury
department has been removed.
These banks are Standard Chartered Bank, Prime, BRAC, The
City, Dutch-Bangla and Southeast Bank. Apart from this, the banks seeking
clarification are HSBC, United Commercial Bank (UCB), NCC Bank, Mercantile
Bank, Dhaka Bank, Bank Asia and Eastern Bank.
In such a situation, the foreign banks are reducing the
relationship with the country's banks. Many banks have reduced loan limits.
Increased fees and interest rates on loans. As a result, costs are rising on
imports, which are beyond the control of the central bank. In such a situation,
the same rate is being fixed for all banks based on new demand and supply.
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