Exchange rate of dollar rises slightly

The interbank exchange rate of the US dollar rose slightly yesterday, two working days after the central bank adopted a market-driven exchange rate system.

Banks traded the greenback at Tk 122.78 per dollar, up from Tk 122.60 the previous day, according to Bangladesh Bank data.

The interbank selling rate was Tk 122 per dollar on Wednesday last week, when the central bank introduced the market-driven framework — a key requirement tied to the International Monetary Fund's (IMF) $4.7 billion loan programme.

Central bank officials described the current situation as stable and credited a higher inflow of US dollars in recent months.

Most banks are now selling dollars to importers at Tk 122.70, while buying them from exporters and exchange houses at rates of Tk 122.30–Tk 122.50 per dollar.

Contacted, Bangladesh Bank Executive Director and Spokesperson Arief Hossain Khan said the central bank is monitoring the foreign exchange market, which is steady due to a surge in remittance inflows and export earnings.

"We are closely observing the market to prevent any manipulation," he told The Daily Star, adding that the central bank has warned banks against any such activities.

As part of the shift to a market-based exchange rate, the central bank on May 14 lifted the Tk 1 spread between the buying and selling rates of the US dollar, rescinding a directive issued in January.

At the same time, it reinstated a circular from December 2024, allowing banks to negotiate dollar rates for both interbank and customer transactions.

This move reinstates a pricing framework determined by market demand and supply.

Speaking on condition of anonymity, a senior treasury official at a private bank said that the central bank and other regulatory bodies have urged market players to act prudently given the currency situation.

"With Eid-ul-Azha approaching, dollar inflows are expected to increase. There is general confidence that the market will remain stable," the official said.

At a recent event, Bangladesh Bank Deputy Governor Md Habibur Rahman said the central bank would step in if exchange rates rise beyond acceptable levels.

"We have the necessary tools to intervene," Rahman said, adding that despite slight fluctuations in the exchange rate following the shift to a market-driven system, no major taka depreciation has occurred.

"There is no pressure for devaluation at the moment," he said. "We will continue to monitor the situation closely."