Dollar price crosses Tk100 in open market

[mmr]

Dollar price crosses Tk100 in open market​

"We have been buying dollars at Tk102 and selling at Tk103.50 since this morning," a senior official at an exchange said​

A packet of US five-dollar bills is inspected at the Bureau of Engraving and Printing in Washington March 26, 2015. REUTERS/Gary Cameron
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A packet of US five-dollar bills is inspected at the Bureau of Engraving and Printing in Washington March 26, 2015. REUTERS/Gary Cameron

The price of dollar has spiked past the Tk100 mark in the open market.
"We have been buying dollars at Tk102 and selling at Tk103.50 since this morning," a senior official at Dawn Money Exchange, one of the largest exchange companies in the capital told TBS Tuesday (17 May).
Money exchange companies said the dollar's value continues to rise because demands have been growing steadily while the supply crisis continues.




As of 12 May, the Bangladesh Bank has sold $5.1 billion to meet the growing demand.
However, the demand for the dollar is not declining as remittance has dropped about 17% till April compared to the previous financial year amidst high export growth.



Dollar surge leaves trail of destruction
Meanwhile, the price of dollar jumped to Tk87.50 in the interbank market Monday.
In the last 21 days, the price of taka has fallen by Tk1.30 against the dollar in three phases.
According to authorities concerned, the cost of import is way more than the export income of the country for which extra dollars are needed to pay the import duty but compared to that, remittance and export income did not increase.
As a result, the pressure on the US dollar in the banking system and in the open market is increasing. This has led to a shortage of foreign exchange.

Dollar hits Tk100 mark in open market

The Bangladesh Bank on Monday devalued the taka against the US dollar for the third time in two months

www.tbsnews.net

 

[Black Tornado]

Dollar price crosses Tk100 in open market​

"We have been buying dollars at Tk102 and selling at Tk103.50 since this morning," a senior official at an exchange said​

A packet of US five-dollar bills is inspected at the Bureau of Engraving and Printing in Washington March 26, 2015. REUTERS/Gary Cameron
" style="box-sizing: inherit; cursor: pointer;">

A packet of US five-dollar bills is inspected at the Bureau of Engraving and Printing in Washington March 26, 2015. REUTERS/Gary Cameron

The price of dollar has spiked past the Tk100 mark in the open market.
"We have been buying dollars at Tk102 and selling at Tk103.50 since this morning," a senior official at Dawn Money Exchange, one of the largest exchange companies in the capital told TBS Tuesday (17 May).
Money exchange companies said the dollar's value continues to rise because demands have been growing steadily while the supply crisis continues.




As of 12 May, the Bangladesh Bank has sold $5.1 billion to meet the growing demand.
However, the demand for the dollar is not declining as remittance has dropped about 17% till April compared to the previous financial year amidst high export growth.



Dollar surge leaves trail of destruction
Meanwhile, the price of dollar jumped to Tk87.50 in the interbank market Monday.
In the last 21 days, the price of taka has fallen by Tk1.30 against the dollar in three phases.
According to authorities concerned, the cost of import is way more than the export income of the country for which extra dollars are needed to pay the import duty but compared to that, remittance and export income did not increase.
As a result, the pressure on the US dollar in the banking system and in the open market is increasing. This has led to a shortage of foreign exchange.

Dollar hits Tk100 mark in open market

The Bangladesh Bank on Monday devalued the taka against the US dollar for the third time in two months

www.tbsnews.net

It’s hovering around 87, why’s it so expensive in the open market?

 

[mmr]

It’s hovering around 87, why’s it so expensive in the open market?

Because its BS fake rate by BD government. Real rate should be 120 or more per USD.

But then bd economy in us dollar will lost one third of its value. and our so called development model economy for the world will be caught pants down.

 

[Sugarcane]

Do government dictate inter-bank rates? Why there's that much gap in inter-bank and open market?

Because its BS fake rate by BD government. Real rate should be 120 or more per USD.

But then bd economy in us dollar will lost one third of its value.

Looks like we have Bangladeshi version of Ishaq Dollar.

 

[Black_cats]

Do government dictate inter-bank rates? Why there's that much gap in inter-bank and open market?



Looks like we have Bangladeshi version of Ishaq Dollar.

Article explained due to shortage of USD at the moment. So at open market people are paying more to collect USD where banks are unable to meet demand.

Due to inflation import cost is increased plus drop in remittance and export earning in April, 2022 has led to this situation.

 

[mmr]

Do government dictate inter-bank rates? Why there's that much gap in inter-bank and open market?



Looks like we have Bangladeshi version of Ishaq Dollar.

Why anyone in right mind will remit us dollar in official channels when you get so much more by selling in un official channels. It will only get worse if bd govt dont re set the us dollar bd exchange rate.

 

[hydrabadi_arab]

Learn from Pakistan experience, this is disaster in waiting.

 

[Black Tornado]

Because its BS fake rate by BD government. Real rate should be 120 or more per USD.

But then bd economy in us dollar will lost one third of its value. and our so called development model economy for the world will be caught pants down.

But that would mean excessive spending of USD to subsidise imports and cause harm to export industries which further depletes forex, while BD’s Forex reserves are growing up instead.

 

[mmr]

But that would mean excessive spending of USD to subsidise imports and cause harm to export industries which further depletes forex, while BD’s Forex reserves are growing up instead.

Yes

 

[BananaRepublicUK]

Yes

BD government will sooner or later have to adjust the official rate.

They probably think the spike is temporary hence subsidising the importers.

Whilst the exporters are benefitting from the high value of dollar.

 

[mmr]

BD government will sooner or later have to adjust the official rate.

They probably think the spike is temporary hence subsidising the importers.

Whilst the exporters are benefitting from the high value of dollar.

It wont be temporary. As feds increases rates us dollar will only get stronger. And commodity market will remain High for long time.

Bd is an import dependent country. Meaning ppl who open lc for import now have to pay 103 or 104 instead of 87. And will pass it on to bd consumers. And bd export of garments also dependent on raw materials import for which u need us dollar.

Remittance will go down significantly in coming months if open market is so high. Which will lead to vicious cycle we seen in Pakistan before.

 

[BananaRepublicUK]

It wont be temporary. As feds increases rates us dollar will only get stronger. And commodity market will remain High for long time.

Bd is an import dependent country. Meaning ppl who open lc for import now have to pay 103 or 104 instead of 87. And will pass it on to bd consumers. And bd export of garments also dependent on raw materials import for which u need us dollar.

Remittance will go down significantly in coming months if open market is so high. Which will lead to vicious cycle we seen in Pakistan before.

US is about to go into a major recession.

Fed made a mistake raising interest rates. Will have to correct it in next few months.

Interest rates is a blunt instrument for controlling oil price shocks. Should be handled by increasing supply and/or curbing demand (mandate home working for office workers etc).

 

[Mahabahu kaunteya]

For Pakistan it crossed 200 , for India its 1 dollar =78

Why this is happening every where?

 

[mmr]

US is about to go into a major recession.

Fed made a mistake raising interest rates. Will have to correct it in next few months.

Interest rates is a blunt instrument for controlling oil price shocks. Should be handled by increasing supply and/or curbing demand (mandate home working for office workers etc).

Fed has to increase rate to control inflation. Oil price will remain high because summer is here. High demand will remain.

 

[Surya 1]

World should move to alternate currency. That is the way forward.