Banks in Bangladesh raise dollar exchange rate for card payment

Customers were paying Tk 95 per dollar bought through cards, while the rate was Tk 111 in cash. Now the rate is Tk 108 for both

Banks have raised the prices of the dollar exchanged through cards after setting new uniform rates.

The rates of the US dollar exchanged through cards increased by as much as Tk 13 to Tk 108 on Monday and Tuesday after the uniform rates kicked in.

Customers had been paying Tk 95 per dollar bought through cards for overseas tuition and event fees, purchase of services and goods while those collecting the greenback without cards were charged up to Tk 111.

To ease the volatility in the currency market, the foreign exchange dealers and banks fixed uniform rates on Sunday following Bangladesh Bank’s instruction.

The rate of dollar for inward remittances was set at Tk 108 or below and Tk 99 for export proceeds. The weighted average of the two rates plus Tk 1 was set as the rate for letters of credit for imports.

The central bank last month recommended that Bangladeshis ask their banks to issue travelcards instead of endorsing cash US dollars for travel abroad.

The recommendation came at a time when Bangladesh is dealing with a severe US dollar shortage, both in commercial banks and in the kerb market due to a massive depletion of its foreign exchange reserves.

On Monday, Bangladesh Bank sold $63 million to the banks at Tk 96 per dollar, said central bank spokesman Serajul Islam, up from Tk 95 in August.

Bangladesh Bank earlier sold the dollar at Tk 95. The banks had also been offering the customers the same rate for dollars bought through cards while the customers had to buy the greenback in cash at Tk 121 in the kerb market and Tk 111 from the banks.

Social Islami Bank sold the dollar at Tk 108 through cards on Tuesday, the same rate as cash. The other banks charged between Tk 104 and Tk 107.5.