Remitters will get Tk 107.5 per dollar instead of Tk 108 from Oct 1

Expatriate Bangladeshis will get maximum Tk 107.5 per US dollar instead of Tk 108, for remittance from October 1, 2022.

Association of Bankers, Bangladesh (ABB) and Bangladesh Foreign Exchange Dealers’ Association (BAFEDA) have set this rate for remittance next month – to stabilize the forex market, reports UNB.

Economists are saying controlling the exchange rate would have negative impact on the current inward remittance flow.

Economist and Chairman of PRI, Ahsan H Mansur, told UNB that this is not the right decision to attract more remittance when the kerb market rate is over Tk 114 per dollar.

It may encourage sending money through illegal channels, which does not help in resolving the forex crisis, he said.

Professor Mustafizur Rahman, distinguished fellow of CPD, also said that controlling exchange rate is not helpful when market demand for forex is expanding.

He said several rates for US dollar will create discrepancies and discourage remittance flow.

The illegal sector will be encouraged while exchange rate difference between banks and kerb market will be widened, Prof. Mustafizur said.

According to the decision of the meeting held on Monday, remitters will get maximum Tk 107.5 per US dollar. Earlier on September 11, ABB and BAFEDA fixed the maximum price of a dollar at Tk 108 for remittance.

The dollar rate of export income monetization will remain at Tk 99 per dollar as before. In the case of payment of import liabilities and inter-bank transactions, price of dollar will be Tk 1 higher than the average price of a dollar bought from expatriate and export earnings.

At the end of the meeting, BAFEDA Chairman Afzal Karim told the reporters, “There was supposed to be a price review from time to time to keep the dollar market normal.”

“In continuation of this, we have decided the new price. The new price will be effective from October 1,” he said.