Economy
Currency Exchange Woes: US Dollar Price Surges in Bangladesh’s Kerb Market
Public reliance on the open market for acquiring US dollars has surged, with the exchange rate reaching Tk 120-121 per dollar. The dollar crisis in the informal market has worsened following raids by Bangladesh Bank and law enforcement on money changers, alleging higher exchange rates.
In this challenging scenario, several individuals are now facilitating dollar transactions through their networks, offering the currency at Tk 120-121 per dollar. They have become the primary source of dollars for those requiring funds for medical treatment, education, and emergencies abroad, according to sources.
Jamal (a pseudonym), the proprietor of a money exchange establishment in Dhaka’s Motijheel area, expressed that they are unable to purchase a dollar even at Tk 115. He questioned how they could possibly sell a dollar at Tk 113.30.
Numerous other money changers and independent dollar traders are inactive due to the currency supply crisis. In just one month, the US dollar’s exchange rate in the open market has surged from Tk 112 to Tk 120-121 per dollar, despite recent actions by the central bank and law enforcement to enforce the previous rate of Tk 113.30 per dollar.
Insiders in the market have pointed to a severe shortage of US dollars in Bangladesh. The foreign currency’s price is soaring uncontrollably, leading to a depreciation of the Taka. Consequently, the dollar’s price in the open market has exceeded Tk 120.
Interviews with various exchange houses and individuals engaged in dollar trading have revealed that most money changers are grappling with a lack of dollars. Sheikh Helal Sikder, the Secretary-General of the Money Changers Association of Bangladesh, stated that Bangladesh Bank has specified the dollar price for money changers, with a buying rate of Tk 111.80 and a selling rate of Tk 113.30. However, Sikder emphasized that no one is able to obtain dollars at this specified price, leaving money changers empty-handed.
In response to inquiries regarding the dollar scarcity in the open market, Bangladesh Bank’s Executive Director and spokesperson, Mesbaul Hoque, acknowledged that dollars are being traded, but not everyone is willing to sell them.
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.
