Interbank dollar rate rises to Tk108.50

Within a week, the interbank exchange rate for dollars rose from Tk108 to Tk108.50, which is the highest in the country's history.

The rate at which one bank sells dollars to another bank is called the interbank exchange rate.

According to central bank data, the dollar traded at the lowest rate of Tk107.26 and highest rate of Tk108.50 on Monday (16 May). 

Earlier on 7 May, the dollar rate rose to Tk108 in interbank exchange. This was the highest dollar rate in this market till day.

Bankers said the interbank dollar rate has increased mainly due to the increase in remittance rates. 

On 30 April, Association of Bankers Bangladesh (ABB) and Bangladesh Foreign Exchange Dealers' Association (BAFEDA) increased the remittance dollar rate by Tk1 to Tk108. 

Earlier, the dollar rate of remittance was Tk107 for about six months, although several banks have brought remittances with higher rates in March.

Since September last year, these two platforms of banks' managing directors have been fixing the dollar price for export proceeds and remittances.

According to senior officials at several banks, at the beginning of 2022, when there was no dollar crisis in the country, the interbank platform used to see an average daily transaction of $15-25 million.

However, as the dollar crisis intensified in the middle of last year, its interbank transactions started to decrease. Due to an obligation to trade dollars on the interbank platform at its selling rate from the reserves, the transactions almost stopped at one stage, they added.

Later in September, transactions on the interbank platform resumed after the central bank allowed banks to transact at a rate determined based on the rate for remittances.

Senior officials from several private banks, who wished to remain anonymous, have stated that even if the dollar rate of remittance is considered the base rate, it is still much lower than the active market rate. Although a maximum charge of Tk0.50 can be added to the remittance rate.

Besides, banks do not have enough dollars to sell. Due to the dollar crisis, they have reduced the opening of import letters of credit. So banks are now doing interbank dollar transactions on request from other banks. Currently, an average of $1.5-2 million is transacted on this platform every day.