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Bangladesh Bank caps difference between dollar buying and selling rates at Tk 1

rainbowrascal

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The gap between the buying and selling rates of the dollar against the Bangladesh currency will be a maximum of Tk 1, according to two officials of the central bank.

bdnews24-english_2022-08_c5c2125d-bc93-411a-978f-54a96e7c18a5_bangladesh_bank_spokesman_seraju...jpg


The development came as the dollar-taka exchange rate set a new record in the so-called kerb market.

Bangladesh Bank took the decision in a meeting with foreign exchange dealers and bankers on Sunday amid a lingering crisis over the supply of the dollar.

“All banks will follow a ceiling,” said Bangladesh Bank spokesman Serajul Islam.

The central bank will monitor the trading of the foreign currency in an effort to ensure the dollar supply.

Bangladesh Bank increased surveillance over the open market along with the banks in an effort to stay on top of the spiking dollar exchange rate. It has punished errant bankers and merchants, but the crackdown seems to have no effect on the market, at least for now, as the price of the greenback continued to rise in the open market.

The clampdown has stoked fears among unlicenced traders. The dollar shortage put an unofficial limit on the size of transactions by the authorised companies and banks.

Despite the ongoing efforts, the dollar’s price has risen in the span of a few days. In May, it was sold at Tk 102 before falling to Tk 98-99 and settling for some time.

But show-cause notices to dozens of money exchange companies and cases against at least 11 others stirred up the open market.

The Bangladesh Bank also ordered the removal of chiefs of treasury departments of five local and one foreign bank for “making extra profit in treasury operations”.

 

Black_cats

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International norm is bank makes 2.5% profit on currency conversion. So with 95 taka per usd it should be minimum 2.375 taka profit per usd at least.
 

BananaRepublicUK

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The gap between the buying and selling rates of the dollar against the Bangladesh currency will be a maximum of Tk 1, according to two officials of the central bank.

View attachment 870692


The development came as the dollar-taka exchange rate set a new record in the so-called kerb market.

Bangladesh Bank took the decision in a meeting with foreign exchange dealers and bankers on Sunday amid a lingering crisis over the supply of the dollar.

“All banks will follow a ceiling,” said Bangladesh Bank spokesman Serajul Islam.

The central bank will monitor the trading of the foreign currency in an effort to ensure the dollar supply.

Bangladesh Bank increased surveillance over the open market along with the banks in an effort to stay on top of the spiking dollar exchange rate. It has punished errant bankers and merchants, but the crackdown seems to have no effect on the market, at least for now, as the price of the greenback continued to rise in the open market.

The clampdown has stoked fears among unlicenced traders. The dollar shortage put an unofficial limit on the size of transactions by the authorised companies and banks.

Despite the ongoing efforts, the dollar’s price has risen in the span of a few days. In May, it was sold at Tk 102 before falling to Tk 98-99 and settling for some time.

But show-cause notices to dozens of money exchange companies and cases against at least 11 others stirred up the open market.

The Bangladesh Bank also ordered the removal of chiefs of treasury departments of five local and one foreign bank for “making extra profit in treasury operations”.


Looks like the kerb market is flush with illegal money looted by criminals.

Government should find a way to increase kerb market rates to around 150 taka to the dollar.

There needs to be some sort of cost for crooks whitening money.
 

mb444

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Looks like the kerb market is flush with illegal money looted by criminals.

Government should find a way to increase kerb market rates to around 150 taka to the dollar.

There needs to be some sort of cost for crooks whitening money.
There is no shortage of dollar in the country. This is an artificial crisis that could have severe long range impact.

The government needs to be ruthless against the hoarders. However as these goons are all BAL party members I suspect not much will be d.one
 

BananaRepublicUK

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There is no shortage of dollar in the country. This is an artificial crisis that could have severe long range impact.

The government needs to be ruthless against the hoarders. However as these goons are all BAL party members I suspect not much will be d.one

Dude! A fiat currency cannot be “hoarded”.

That’s exactly why the gold standard was abandoned.

US government ruthlessly deals with hoarding of Dollar through means like QE.

The problem is not the supply of Dollar but the desperation of crooks to whiten money before government brings in new rules to curb hundi business.

It’s not a supply problem but a consumption problem.

Best way to deal with over consumption is by tightening supply.

Hasina has done this by making it hard for the kerb maker to acquire Dollars.

Btw, hundi market is dominated by hindu banyas.

They need to dealt with ruthlessly.
 

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