Move towards market-based exchange rate by FY23-end: Bangladesh Bank

The central bank today said it is taking necessary measures to gradually move towards a market-based, flexible and unified exchange rate regime by the end of the ongoing fiscal year.

The move will aim at getting rid of the volatility in the exchange rate regime owing to multiple exchange rates.

In September, the Bangladesh Foreign Exchange Dealers' Association (BAFEDA) and the Association of Bankers Bangladesh (ABB) in September agreed to follow multiple exchange rates amid the shortage of US dollars.

As per the decision, exporters are allowed to get Tk 102 for each US dollar. Importers buy the greenback based on the weighted average exchange rate plus Tk 1. The average rate will be decided based on the rates paid to exporters and exchange houses.

But in a desperate attempt at collecting the greenback to meet immediate requirements, a good number of banks are ignoring the directives of the two associations.

Documents seen by The Daily Star showed that three banks were ignoring the decisions of the two associations, offering up to Tk 110 for each dollar availed from foreign exchange houses.

Senior bankers, on condition of anonymity, say that at least 15 to 20 banks were offering higher rates.

The forex market in Bangladesh has turned volatile amid escalated import bills caused by the Russian-Ukraine war, higher than the combined receipts from remittances and exports.