- Dhaka
Dollar Price for Import LCs Remains Stable at Tk122 After Market-Based Exchange Rate Implementation
The dollar price for import LCs (Letter of Credit) remained steady at Tk122, as most banks decided to adhere to this rate today (May 15), the second day after the Bangladesh Bank directed banks to implement a market-based exchange rate in line with the conditions set by the International Monetary Fund (IMF).
According to a source, treasury heads of commercial banks held an informal meeting today and collectively decided to trade foreign currency at Tk122.
However, two state-owned banks purchased remittance at Tk122.50, as they prioritize service over profit, according to a treasury head who wished to remain anonymous. These two banks did not receive any verbal instructions from the Bangladesh Bank regarding the exchange rate on that day.
Bankers mentioned that the liquidity of dollars was adequate as remittance inflow has been high ahead of Eid, and there were no signs of foul play by aggregators on that day.
On May 14, Bangladesh Bank officially announced a shift to a market-based exchange rate system, allowing market participants to negotiate dollar rates freely as a condition for confirming the IMF loan. However, there will be an undisclosed band within which the exchange rate must stay.
At the same time, Bangladesh Bank will continue to intervene in the foreign exchange market by buying and selling dollars.
The dollar rate had remained between Tk122 and Tk122.50 for several months, and no significant change was observed even after the implementation of the market-based exchange rate mechanism.
Previously, Bangladesh Bank set a maximum spread of Tk1 between buying and selling rates for foreign currencies, but this provision was repealed through a circular issued on May 13 to facilitate the implementation of a market-based exchange rate.
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