Dollar price falls in kerb market

The price of the US dollar fell in the kerb market today as supply increased while demand eased, said currency exchangers.

The greenback, which has been registering volatility amid shortages for more than one-and-a-half years, was traded at up to Tk 126 each, down from Tk 127 on Thursday.

The price of the US dollar dropped to as low as Tk 123 this evening, said AKM Ismail Haq, president of the Money Changers Association of Bangladesh.

"The exchange rate in the kerb market has fallen in the same way it surged. I believe the rate will decline further," he added.

The exchange rate of the dollar in the informal foreign currency market, a source of dollar and other currencies for travellers abroad, jumped after recent media reports.

The reports alleged that some banks were offering as much as Tk 124 per greenback to encourage remitters to use formal channels instead of informal money transfer systems like "hundi".

The Bangladesh Foreign Exchange Dealers' Association and Association of Bankers' Bangladesh on November 8 asked banks not to pay over Tk 115 for every dollar at the time of collecting foreign currencies from remitters.

Later, Bangladesh Bank asked banks to follow the rate and warned against paying higher to remitters.

Haq said they got verbal instruction from the central bank that currency exchangers would be able to buy the US dollar at Tk 117 each and sell it by taking a maximum commission of Tk 1.5 each.

This means that money changers will be able to charge Tk 118.5 per US dollar, he added.