Dollar shortage forces price rise for greenbacks in kerb market
Money changers in the country on Wednesday claimed that as fewer people are selling dollars in the kerb market despite demand, the value of the greenbacks is rising in the open market.
Money changers were seen buying dollars between Tk95.50-96, which they would sell for Tk96.50-97.
Earlier on Tuesday, the dollar was bought for Tk95-95.70 and was sold at Tk96.30-96.50. As such, the dollar rose by 20-50 paisa in a single day.
Keep updated, follow The Business Standard's Google news channel
Abdullah Al Hadi, an official at Motijheel's Dohar Money Changer, said on Wednesday afternoon dollars were no longer available in the market.
"Yesterday we were able to sell a few dollars but could not buy a single dollar. Even today the situation is not very favourable. Some people came in the morning to sell dollars, but no one else has come since," he said.
Hadi also said there were buyers for dollars, but if the situation prevailed then the value of the currency would rise further.
An official of a money changer organisation, who did not want to be named, told TBS that many money changers had bought dollars when its value rose to Tk103 in mid-May. They then had to face losses as the value of the dollar dipped.
"Besides, people are coming to us to buy dollars as there is a scarcity of it in public and private banks. As a result, the demand has increased," he said.
Furthermore, the demand for dollars rose due to an increase in imports. To ease pressure, the Bangladesh Bank released $5.11 billion to banks till 12 May. In Fiscal Year 21, the central bank had purchased around $8 billion from banks.
In the meantime, forex reserves are facing pressure because of a rise in imports in post-pandemic times and higher payments for those due to a rise in prices in the international market.
The country's reserves, which reached $48 billion in August last year, dropped to $41.93 billion on 11 May.
In the July-March period of FY22, exports registered about 33% growth, but the trade deficit slid to $25 billion, which was 9% higher than the previous fiscal year.
