Dollar rates ease in Bangladesh’s banks, stays costly outside as remittance surges

The dollar has continued to lose ground against the taka as remittance inflows rise and import spending trends lower.

Over a week, the greenback fell 61 poisha, or 0.50 percent, in the interbank market.

On Thursday, the dollar traded as high as Tk 123.41, as low as Tk 123.05, with an average rate of Tk 123.20. A week earlier, the average was Tk 123.81.

But banks are selling dollars at higher rates, while the open market is charging Tk 126-127.

“It's a good sign. The dollar is falling amid a surge in remittances,” Bangladesh Bank spokesperson Arief Hossain Khan told bdnews24.com.

“In just 12 days of this month, $1.5 billion in remittances has come into the country.”

He said lower demand for dollars, including reduced payments for fuel and fertiliser, was also pushing prices down.

Yet the open market remains tight. A Motijheel dealer said supply was failing to meet demand, keeping prices elevated.

Bangladesh Bank data show expatriates sent $1.5 billion in the first 12 days of August, up 42.2 percent year-on-year.

If the pace continues, August remittances could approach $4 billion -- potentially a monthly record.