Shawdesh desk:

Multiple dollar rates have created an unstable situation for businesses that rely on imports for capital machinery and other materials.

Sources said the retail rate of the greenback was Tk 112 per unit at private exchange houses on the weekend, while Sonali Bank’s official rate is Tk 107 per unit.

To support local businesses, trade body leaders and economists urged the same rate to be applied to imports and exports.

Shams Mahmud, former President of the Dhaka Chamber of Commerce & Industry (DCCI), said there are three dollar rates in the market that affect remittance inflows, a major source of foreign exchange.

“The dollar rate should remain open to the market. It cannot be controlled. As a result, multiple rates will be closed and the market will gradually stabilize. If multiple rates continue after a country has graduated from the LDC, the local industry will be severely affected. Furthermore, multiple rates also encourage money laundering. As we move to an open market economy, the dollar rate should be unique across all segments,” Shams, also chair of the standing committee on foreign mission cell of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told the Daily Sun.

In the future, Bangladesh will benefit from foreign exchange policies that support small and medium enterprises, he noted. The Bangladesh Foreign Exchange Dealers Association and the Bangladesh Association of Bankers have raised the US dollar exchange rate for export proceeds by Tk 1 to Tk 102 from the first week of this year.

Bangladesh Bank reports that the foreign exchange reserves of the country reached $33.74 billion by December while remittance inflows rose to $169.9 billion from $163.06 billion a year ago.

The chairman of the state-owned Agrani Bank, Zaid Bakht, believes the dollar market will be stable soon after remittance inflows follow uptrends like export earnings.

“Dollar prices may decline with an increasing trend in major economic indicators. Export earnings indicate that the economy is doing well. Bangladesh Bank has continued to correct the market from time to time. Commodities import bills have increased ahead of Ramadan, creating some pressure on the dollar. The gap between the kerb market and official rates will be reduced soon,” Dr Zaid, former research director of Bangladesh Institute of Development Studies (BIDS), told Daily Sun.

The US dollar reached an all-time high of Tk 121 in August last year and is now selling at around Tk 110. The price of the dollar in banks has risen to Tk 107, but Bangladesh Bank is selling it at Tk 95.

The BAFEDA and the ABB have been fixing the official exchange rates of dollars flowing into the country through the banking channel for different sectors since September 2022.