The rising remittance dollar rate in Bangladesh has pushed the exchange rate for settling import letters of credit to Tk123.80-125, raising concerns about increased import costs and inflation. Banks are now purchasing remittance dollars at rates of Tk124.80-125.60, up from Tk124.20 just a day earlier. This trend, driven by heightened demand for dollars, may exacerbate imported inflation, particularly as banks prepare to open LCs for Ramadan commodities.
State-owned and private bank officials noted that increased demand for dollars, despite reduced overdue payments, has fueled this surge. Some banks are reportedly buying dollars at higher rates with customer consent. For export proceeds, banks are paying Tk119-120 per dollar, increasing their average purchasing costs and pushing up selling rates.
Experts, including Syed Mahbubur Rahman, CEO of Mutual Trust Bank, warn that the rising dollar rate could intensify inflationary pressures, though the impact may not yet be severe. However, state-owned banks are under pressure to meet large payment obligations, contributing to the upward trend in dollar prices. As the situation evolves, banks remain cautious about managing dollar transactions, with concerns about rising costs affecting profitability and inflation control efforts.
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