Banks have once again raised the official rate of the dollar by Tk0.50 for remittances, export proceeds, and import settlements amid volatility in the country's foreign exchange market.
The new dollar rates are Tk110 for remittances and export proceeds and Tk110.50 for import settlements.
This decision was made at a joint meeting of the Bangladesh Foreign Exchange Dealers' Association (Bafeda) and the Association of Bankers' Bangladesh (ABB) on Sunday.
Md Afzal Karim, Bafeda chairman and managing director of Sonali Bank, told TBS that banks will implement the new rate on Monday.
Earlier on 31 August, the two platforms of bank managing directors in a meeting increased the dollar rate by Tk0.50 for remittance and by Tk1 to Tk109.50 for export proceeds. The dollar selling rate for import payments was increased by Tk0.50 to Tk110.
The two bodies have been fixing the dollar rate every month for the past year. The price of the dollar has increased three times in the current financial year.
A source present at the meeting said some bank MDs offered various prices to customers to increase remittances. However, the proposal was not accepted considering that if it is introduced, an unfair practice may be introduced in collecting remittances among the banks.
A managing director of a bank told TBS that remittances should increase if the dollar rate increases. "But in reality, we are not seeing that. One of the reasons for this is that some banks are getting higher remittances due to higher dollar rates. However, the dollar rate is higher in the informal channel now. We believe that remittances are increasing through Hundi," he added.
Bangladesh Garment Manufacturers and Exporters Association President Faruque Hassan told TBS, "The dollar price of export proceeds has increased; it is definitely very good for us. But the dollar price should be market-based. There is a big difference between the formal rate of the dollar and the market-based rate."
The businessman commented that if the price of the dollar increases, remittances will also increase along with exports.
According to the central bank data, Bangladesh received $1.05 billion in remittances through banking channels in the first 22 days of September this year.
In August, remittance receipts stood at $1.6 billion.
Remittances totalled $21.61 billion in FY23, up by 2.75% over the previous fiscal year.