Economy
Banks sell $16m at Tk106 interbank rate
Banks transacted $16 million among themselves at Tk106 per dollar on Tuesday, the second day since the interbank forex market resumed after five months with banks agreeing on uniform rates for exporters and remitters.
The interbank rate was Tk103.50 a day prior.
On Tuesday, banks encashed remittance and export proceeds at the rate set by the Bangladesh Foreign Exchange Dealers Association (Bafeda).
Of the sales, the highest of $2 million was sold by City Bank, Bangladesh Development Bank and Eastern Bank.
Mashrur Arefin, vice chairman of the Association of Bankers, Bangladesh (ABB) and also MD of City Bank, told, “I am happy that we sold $2 million in the interbank market today. Two smaller banks needed dollars badly. We sold them at Tk105 rate. My buying cost was higher than that, but I don’t actually look at profit and loss.
“I basically take a view of the market – whether the dollar will go below Tk105. The underlying assumption is that an active interbank market will essentially diminish the cost of remittance dollars.”
Last Sunday, Bafeda and the ABB decided that the dollar price will be determined by calculating the average price of foreign exchange and export earnings in five working days. All banks will encash export proceeds and collect remittances at the same rate.
Last Sunday, the maximum remittance collection rate was Tk108. Bafeda set a maximum of Tk99 per dollar to encash export income.
However, banks will settle import Letter of Credit (LC), using a weighted average buying cost at a maximum rate of one taka higher.
The leaders of the organization said the rate will change after a few days.
Treasury officials, however, said not all banks are profiting Tk1 per dollar, with some adding a maximum of Tk0.30-0.50.
According to that, yesterday the banks were settling LCs at a maximum of Tk108.50 and minimum of Tk105.
They said banks had agreements with some exchange houses which meant remittance dollars were received from those at a slightly lower rate.
No bank, however, has charged a rate higher than Tk108.
In case of export proceeds, exporters have received the rate of Tk99 fixed by Bafeda against the dollar.
Besides, exchange houses have been given a maximum of Tk108 per dollar for remittances.
Selim RF Hussain, ABB chairman and managing director of Brac Bank, said due to the decision taken by ABB and Bafeda, some comfort was returning to the market.
He, however, said it would still take time.
“We have introduced these rates in close coordination with the Bangladesh Bank. Our main objective is to bring stability to the market. It will probably happen in a few days.”
Although banks followed the interbank rate, the Bangladesh Bank’s rate remained the same. On Tuesday, the central bank sold dollars at Tk96, after it increased the price by Tk1 on Monday.
Central bank spokesperson Serajul Islam said $45 million dollars were sold yesterday at a rate of Tk96 for government imports and imports of daily essentials.
He said now the banks’ dollar rate will be uploaded on the central bank’s website, but the central bank’s rate would not be available there for now.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
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