Dollar price crosses Tk100 in open market

[bluesky]

It’s hovering around 87, why’s it so expensive in the open market?

The open market price at 102 Taka per dollar is the real value. People will not like when I say Taka will fall to at least 120 per dollar in a short period. This will cause less imports of luxury consumer goods and propel the FDIs to invest in BD. FDI goods will become cheaper in the world market. Taka superficially overvalued hurts the economy.

 

[bluesky]

Article explained due to shortage of USD at the moment. So at open market people are paying more to collect USD where banks are unable to meet demand.

Due to inflation import cost is increased plus drop in remittance and export earning in April, 2022 has led to this situation.

Do not please repeat govt excuses by saying prices have risen in the exporting countries. But, why BD has to import 80 billion dollars worth of goods many of which are industrial goods like steam/ diesel locomotives, train coaches and many luxury goods for the corrupt rich people like you.
Why the GoB does not encourage moneyed people to build factories? It does so because producing goods in the country will disallow the filthy rich to import and become richer at the expense of the country’s welfare.
Do you think it is the best approach not to build factories for those items that are imported? Yet, guys like you keep on claiming BD is a highly developing country. You will see the results of infrastructure building with foreign loans in a few years when BD will be paying back 5 billion dollars a year to repay the foreign loans. Taka may depreciate to the level of 140 Taka per dollar.
Enjoy your fruitless developments.

 

[bluesky]

For Pakistan it crossed 200 , for India its 1 dollar =78

Why this is happening every where?

It is more happening to those countries that depend upon foreign imports of even a tiny industrial or luxury goods.

 

[Pak Nationalist]

Do government dictate inter-bank rates? Why there's that much gap in inter-bank and open market?



Looks like we have Bangladeshi version of Ishaq Dollar.

But even with that inflated value of Takka. They are managing to keep their exports competitive.

 

[Black_cats]

Do you think it is the best approach not to build factories for those items that are imported? Yet, guys like you keep on claiming BD is a highly developing country. You will see the results of infrastructure building with foreign loans in a few years when BD will be paying back 5 billion dollars a year to repay the foreign loans. Taka may depreciate to the level of 140 Taka per dollar.
Enjoy your fruitless developments.

Import bill is high as it’s well known through under invoicing and over importing money is getting laundered. In some cases even without any import money is sending to foreign countries with fake clearance.

Government is trying to tackle both scenarios with imposing of restriction on luxury goods import and making it mandatory to check online system of import confirmation prior clearing the money.

Bangladesh Bank toughens rules for luxury item import

Bangladesh Bank today instructed banks to take up to 75 per cent of payments in advance from businesses during opening of letters of credit for import of luxury and non-essential goods.

www.thedailystar.net

This is not only Bangladesh but whole world is facing such situations. The brand value that luxury products includes can not be replaced just by creating a factory and economic justification needs to be there.

In the long run for sure fire focus can be put towards building more factory for goods that we import but this will take some time to happen.

 

[fallstuff]

$ will go up, $ will go down. The entire world will adjust accordingly, and as such Bangladesh will do the same.

I doubt any of the naysayers ever did any import/export or any business at all.
The garments exporting folks pushed the business to $50 billion with barely any FDI.

It doesn't matter what will it cost to buy a dollar, in the end people still need their undies.

 

[BananaRepublicUK]

The open market price at 102 Taka per dollar is the real value. People will not like when I say Taka will fall to at least 120 per dollar in a short period. This will cause less imports of luxury consumer goods and propel the FDIs to invest in BD. FDI goods will become cheaper in the world market. Taka superficially overvalued hurts the economy.

Dollar will slide because US is about to hit recession.

The stupid fed raised interest rates - pushing the dollar high - hitting US stocks and consumer spending.

Bangladesh needs some short term policies.

Curving luxury goods import is not easy. Most of it is consumed by the hospitality sector.

Foreign buyers already hate Dhaka - you don’t want to totally piss them off by denying them caviar, truffles and Johnny Walker!!!!

 

[bluesky]

Dollar will slide because US is about to hit recession.

The stupid fed raised interest rates - pushing the dollar high - hitting US stocks and consumer spending.

Bangladesh needs some short term policies.

Curving luxury goods import is not easy. Most of it is consumed by the hospitality sector.

Foreign buyers already hate Dhaka - you don’t want to totally piss them off by denying them caviar, truffles and Johnny Walker!!!!

You are very conveniently talking about a future dollar sliding. When no one knows. But, the issue here is the price of Taka vis-a-vis all currencies. It is sliding so fast that in no time it may slide to Tk120 to a dollar.

It is because BD is importing goods that with industrialization could have been produced in the country. When imports are more than $80 billion, the export plus remittance is hardly above $60 billion. The trade imbalance is more than $20 billion.

 

[Black_cats]

You are very conveniently talking about a future dollar sliding. When no one knows. But, the issue here is the price of Taka vis-a-vis all currencies. It is sliding so fast that in no time it may slide to Tk120 to a dollar.

It is because BD is importing goods that with industrialization could have been produced in the country. When imports are more than $80 billion, the export plus remittance is hardly above $60 billion. The trade imbalance is more than $20 billion.

Please don’t make speculations for present crisis. USD value has come down to 96.

ডলারের দাম কমল ৬ টাকা | কালের কণ্ঠ

ডলারের দাম আরো বাড়বে, কিনে রাখলেই লাভএমন প্রচারণায় প্রলুব্ধ হয়ে খোলাবাজার থেকে অনেকেই ডলার কিনেছেন। কিন্তু

www.kalerkantho.com

 

[bluesky]

Please don’t make speculations for present crisis. USD value has come down to 96.

ডলারের দাম কমল ৬ টাকা | কালের কণ্ঠ

ডলারের দাম আরো বাড়বে, কিনে রাখলেই লাভএমন প্রচারণায় প্রলুব্ধ হয়ে খোলাবাজার থেকে অনেকেই ডলার কিনেছেন। কিন্তু

www.kalerkantho.com

Why do you think I speculate? Did I write the news? But, it is wiser not to hide the reality that BD Taka is sliding down even though it is now 96 Taka per dollar.

But, it may have due to the selling of dollars from the reserves.

However, I would like BD Taka to to slide to 120 Taka vs 1 US. I know why short-sighted people like you would be devastated at that. Taka devaluation will bring down your GDP figure by 1/4th and you guys will be losing your great false prestige.

However, I personally want BD Taka120 to 1 US. The reasons?

1) Possibly, it will induce FDI Executives to rush to BD to open industrial plants. Labor is cheap at the weaker Taka
2) BD will import less quantity of industrial and luxury goods because it is expensive when Taka is weak
3) The GoB will be forced to encourage private people to build factories
4) In this process, I wish a few industrial giant companies grow up and they build industrial goods, locomotives and train coaches.
5) This is how people will get employment and BD will produce many mechanical goods that it imports now

Then, of course, you guys will lose prestige because BD people will become working class society although you guys want BD to become an utopian country where people do not work hard and the developed countries keep on sending shiploads of honey and milk forever.

You guys love free lunch. Not bad.

 

[Black_cats]

Why do you think I speculate? Did I write the news? But, it is wiser not to hide the reality that BD Taka is sliding down even though it is now 96 Taka per dollar.

But, it may have due to the selling of dollars from the reserves.

However, I would like BD Taka to to slide to 120 Taka vs 1 US. I know why short-sighted people like you would be devastated at that. Taka devaluation will bring down your GDP figure by 1/4th and you guys will be losing your great false prestige.

However, I personally want BD Taka120 to 1 US. The reasons?

1) Possibly, it will induce FDI Executives to rush to BD to open industrial plants. Labor is cheap at the weaker Taka
2) BD will import less quantity of industrial and luxury goods because it is expensive when Taka is weak
3) The GoB will be forced to encourage private people to build factories
4) In this process, I wish a few industrial giant companies grow up and they build industrial goods, locomotives and train coaches.
5) This is how people will get employment and BD will produce many mechanical goods that it imports now

Then, of course, you guys will lose prestige because BD people will become working class society although you guys want BD to become an utopian country where people do not work hard and the developed countries keep on sending shiploads of honey and milk forever.

You guys love free lunch. Not bad.

Same is the case with Pakistan as well but what you have said didn’t materialize. There 1 USD is now more than 200 PKR. It will raise inflation and make life of poor and middle class difficult.

See the devaluation chart for the last 1 year against USD of different countries. Only for Vietnam and Bangladesh it didn’t fall much.

 

[pikkuboss]

Same is the case with Pakistan as well but what you have said didn’t materialize. There 1 USD is now more than 200 PKR. It will raise inflation and make life of poor and middle class difficult.

See the devaluation chart for the last 1 year against USD of different countries. Only for Vietnam and Bangladesh it didn’t fall much.

View attachment 845993

Just don't become Egyptian pound, it was a better Currency than BDT until recently. Take a gradual devaluation while it's still possible.

 

[bluesky]

Same is the case with Pakistan as well but what you have said didn’t materialize. There 1 USD is now more than 200 PKR. It will raise inflation and make life of poor and middle class difficult.

See the devaluation chart for the last 1 year against USD of different countries. Only for Vietnam and Bangladesh it didn’t fall much.

View attachment 845993

I think, the situation between BD and Pakistan is quite different. While BD already has a strong export performance on the strong footing of garments, Pakistan will have to struggle for many years to build a similar base.

To build a strong base in Pakistan would be difficult as well, one reason being they do not really allow their women to go out and work. While a man needs 20,000 Rupees as his salary, a woman works for 10, 000 Taka in BD. So, Pakistani products may be more expensive than it is in BD.

When BD spends very low amount of money on its military, Pakistan wastes its precious money on it. Pakistani mindset is unable to get rid of its Kashmir quagmire and wastes money on military.

About FDIs in Pakistan, even Chinese companies do not want to invest there because that country to them is totally overshadowed by religious Fatwas. Recently, they have killed a few Chinese. Moreover, Gwaddar is also a flop. China does not need it.

So, unless the social bases are changed in Pakistan, I do not think FDIs will go there. All Muslim countries are similarly seen. Yet, BD, Indonesia or Malaysia are seen differently.

I believe, FDIs will come to BD shore once Taka falls a little more. Now, it is artificially overvalued although the same is not happening to Pakistan when Rs200 is one US.

 

[Indos]

Current situation is crisis, you see last year IMF said European countries economic growth rate will be skyrocketing while Asian developing countries, except China and India, will have lower growth, now we see the opposite, and the trend has already been there since second semester of 2021, before Russia invasion, with higher energy and commodity prices.

Supply chain disruption during Covid period in commodity ( example of Malaysian CPO producers cannot get enough Indonesian workers to pick the fruits that lower their current production ) and energy sector ( example is renewable economy pledge has sucked many of energy company to do diversification effort and invest less in finding more oil and gas and also drilling in current oil and gas field) are the reason behind this when demand start to increase as the world economy see more opening after worst Pandemic period in 2020.

In the beginning USA is only wanting to absorb so many excess liquidity due to their long behavior of printing money ( Quantitative Easing ) that cause inflation when the demand pick up. Now with the energy and commodity price increase and exacerbate with Russia invasion, the World economic situation is getting much worst.

Current situation also shows it is difficult to get funding from bond market, particularly for developing countries, if any country keep pushing issuing bond like in normal days, they will suffer with higher yields that they need to bare to lure the bond investor appetite.