Economy
Dollar Exchange Rate for Repatriated Export Income Surge to Tk107.5
The Bangladesh Foreign Exchange Dealers Association (BAFEDA) and Association of Bankers Bangladesh (ABB) have increased the exchange rate of the US dollar for repatriated export income by Tk 0.5, bringing it to Tk 107.5 per dollar. This decision was made during a meeting held on Monday, where top bank executives involved in foreign exchange transactions gathered. Since September 2022, a joint committee comprising BAFEDA and ABB has been responsible for determining the exchange rate between the taka and the US dollar, which is the world’s reserve currency. Although the intention was to establish a floating exchange rate, the system has not operated as planned.
Economists have criticized the existence of multiple exchange rates and have advocated for a single, unified exchange rate. However, the BAFEDA-ABB committee has yet to address this demand. Following the recent announcement, exporters will receive Tk 107.5 in local currency for each dollar earned through exports. In contrast, the exchange rate for expatriate income (remittances) remains unchanged at Tk 108.5. Additionally, the maximum interbank rate will continue to be Tk 109 per US dollar.
The country has been facing a dollar crisis since March of the previous year, primarily triggered by the Russia-Ukraine conflict. In an attempt to tackle the crisis, Bangladesh Bank initially fixed the exchange rate. However, this approach exacerbated the situation. In September of last year, Bangladesh Bank officially relinquished its responsibility for determining the exchange rate, transferring it to ABB and BAFEDA in consultation with the central bank. Since then, these two organizations have been collaboratively determining the dollar price for export and repatriation income, as well as import liabilities. Essentially, they are implementing decisions made by Bangladesh Bank.
The adjustment in the exchange rate for repatriated export income reflects ongoing efforts to address the dollar crisis in Bangladesh. The decision made by BAFEDA and ABB will impact exporters, who will now receive Tk 107.5 for each dollar earned through exports. While the move towards a floating exchange rate has encountered challenges, economists continue to advocate for a single, unified exchange rate to promote stability and transparency in foreign exchange transactions. The joint committee comprising BAFEDA and ABB plays a pivotal role in determining the exchange rate, working closely with Bangladesh Bank to address the complex dynamics of the country’s foreign exchange market.
The newest tranche of US funding will assist Bangladesh towards a more inclusive, equitable and democratic course for its people, the US Embassy in Dhaka said today (16 September).
According to the embassy, from 2021-2026, USAID has committed nearly $1 billion to help improve the lives of the Bangladeshi people.
During the US delegation’s visit yesterday (15 September), USAID signed a development agreement worth over $200 million with the interim government to support Bangladesh in advancing development, strengthening governance, expanding trade, and creating greater opportunities for the Bangladeshis to build a brighter and more prosperous future.
The officials discussed ways to support inclusive economic opportunities for the people of Bangladesh, ensure financial stability, and strengthen democratic governance.
The US interagency delegation held meetings with key advisers for the Bangladesh interim government, including Chief Adviser Prof Muhammad Yunus, Foreign Affairs Adviser Touhid Hossain, and Finance and Commerce Adviser Dr Salehuddin Ahmed yesterday.
The US delegation included Department of Treasury Assistant Secretary Brent Neiman, Assistant Secretary of State for the Bureau of South and Central Asian Affairs Donald Lu, USAID Deputy Assistant Administrator for Asia Änjali Kaur, and Assistant US Trade Representative Brendan Lynch.
Bangladeshi landowners are set to regain around 200 acres of land that had shifted into Indian territory due to the erosion of the Padma River along the Daulatpur border in Kushtia. This decision followed a joint agreement reached during a meeting between the Border Guard Bangladesh (BGB) and India’s Border Security Force (BSF) on Sunday.
The land in question, situated in the Challishpara area of Ramkrishnapur union, became disputed due to the shifting course of the Padma River and natural disasters, which disrupted boundary markers over a three-kilometer stretch. The issue was first identified in a survey earlier this year.
Lieutenant Colonel M Mahbub Murshed Rahman, commander of BGB’s 47th Battalion, confirmed the decision to resurvey the area and return the land to its rightful owners. A survey on February 10 revealed that approximately 200 acres of Bangladeshi land had ended up inside Indian territory, while 40 acres of Indian land were found in Bangladesh.
Both countries plan to officially correct the boundaries in October, following the resurvey. Sunday’s meeting, held at the Jamalpur Border Outpost, also addressed broader issues like preventing border killings and tackling drug trafficking.
Lt Col Rahman stressed that no one will be allowed to use the disputed land until the resurvey is complete. He also expressed Bangladesh’s strong opposition to recent border killings, urging the BSF to prevent the detention of innocent citizens and curb illegal cross-border activities, especially ahead of Durga Puja.
The holy Eid-e-Miladunnabi, commemorating the birth and demise of Prophet Hazrat Muhammad (PBUH), is being observed across Bangladesh today with profound religious reverence. The observance was confirmed during the National Moon Sighting Committee’s meeting on September 4, held at the Islamic Foundation’s Conference Room in Baitul Mukarram National Mosque. The meeting was chaired by the Secretary of the Ministry of Religious Affairs, Md Abdul Hamid Jamaddar, as announced in a press release.
The committee confirmed that the moon of Rabiul Awal 1446 Hijri was sighted in the sky of Bangladesh on September 4, marking the beginning of the holy month of Rabiul Awal from September 5 (Thursday).
On this day in 570, Prophet Muhammad (PBUH) was born in Makkah, Saudi Arabia, bringing divine blessings and messages of peace to humanity. He passed away on the same date, 12th Rabiul Awal, of the Hijri calendar.
In honor of the occasion, President Mohammed Shahabuddin and the Chief Adviser to the interim government, Prof Dr Muhammad Yunus, issued separate messages, extending greetings to the people of Bangladesh and Muslims worldwide.
To mark the day, Bangladesh Television (BTV) and Bangladesh Betar are airing special programmes, while various national newspapers have published supplements underscoring the significance of the event. The day is also observed as a public holiday throughout the country.
