Metropolis Desk-
The US dollar reached Tk 125 in the kerb market Wednesday, a mere day after the Bangladesh Bank unveiled its flexible exchange rate scheme, known as the crawling peg.
Motijheel money exchanges in Dhaka were observed selling US dollars for around Tk 7, which is around Tk 7 more than the rate of Tk 117.2 per dollar from yesterday.
The central bank introduced the crawling peg and, in an unusual move, depreciated the local currency by Tk 7 to Tk 117 yesterday, the worst decline against the strong dollar in a single day.
The Daily Star was informed by Mostofa Ahmed, the proprietor of Suganda Money Changer, that consumers have been buying more US dollars due to the possibility of future price increases, which has made the US currency more valuable.
Just one day after the official rate hike, he continued, the price of the US dollar increased by Tk 7 in the kerb market.
Another Motijheel money changer, Helal Uddin, stated he had ceased dealing in US dollars at the higher rate in the kerb market.
“If we trade USD at higher rates, law enforcement agencies will fine us.”
Not only the kerb market operators, but banks have also increased the USD rate in case of opening of letters of credit (LCs).
Some banks have raised the rate by Tk 3-4 from the previous rate, according to industry insiders.
Before the commencement of the crawling peg, the official US dollar rate for LC opening was Tk 110 when banks used to charge between Tk 114-115.
Just one day after the official rate hike, he continued, the price of the US dollar increased by Tk 7 in the kerb market.
Another Motijheel money changer, Helal Uddin, stated he had ceased dealing in US dollars at the higher rate in the kerb market.
“If we trade USD at higher rates, law enforcement agencies will fine us.”
In addition to the kerb market operators, banks have raised the USD rate when opening credit letters (LCs).
Industry insiders claim that some banks have increased the rate by Tk 3–4% from the prior rate.
Banks used to charge between Tk 114 and Tk 115 for LC openings, although when the crawling peg started, the official US dollar rate was Tk 110.
