Dollar exchange rate jumps to Tk 117 as Bangladesh introduces ‘crawling peg’ regime

The introduction of the new exchange rate adjustment method saw the dollar appreciate Tk 7 in value

The taka has depreciated in value against the US dollar after the introduction of the new ‘crawling peg’ exchange rate regime.

Bangladesh Bank set the new price of the US dollar at Tk 117, up Tk 7 from the previous rate of Tk 110. This means the dollar appreciated 6 percent in value in a single day.

Bangladesh will follow this exchange rate adjustment system going forward based on advice from the International Monetary Fund.

From Dec 17, the exchange rate of the dollar was set at a maximum of Tk 110 in the banking sector. Businessmen have complained that they have had to buy dollars at Tk 115 to Tk 116.

The dollar exchange rate for cards is Tk 114, which is Tk 118 on the open market.

On Wednesday, Bangladesh Bank issued a circular to the commercial banks on setting the new rates, saying, “Aside from this, banks can buy and sell dollars at the desired rate to customers and to other banks.”

The new exchange rate regime takes effect on Wednesday, the central bank said.

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