Siddique Islam
Exchange rate of cash US dollar against the local currency in the banking channel and also in the open market, known as kerb market, has increased by around Tk 1.0 in a week, traders said. The US currency rate reached Tk 86.70 on Tuesday, as the demand for the greenback has gone up lately. It was Tk 85.70-85.80 last week, they added.
Cash US dollar was quoted at rates ranging between Tk 84.50 and Tk 86.80 each by some banks on the day, according to the central bank's latest monitoring report.
"The demand-supply mismatch of the US dollar in the market is the main cause behind the rising trend of cash dollar rates," a senior currency trader told the FE.
He also said cash dollar is mainly used for medical treatment, education and business purposes.
"Tourists also buy cash dollar in an increased amount ahead of the long vacations like Eid etc," the trader added.
Some senior bankers feared that the country's remittance inflow through formal channel may be affected in the near future, if the ongoing upward trend of cash US dollar exchange rate continues in the market.
Currently, there is a gap of nearly Tk 4.0 between the exchange rate of cash dollar and telegraphic transfer (TT) clean rate for remitters.
The banks offered an average rate of Tk 82. 87 to the remitters for TT on Tuesday, according to the daily report of Bangladesh Foreign Exchange Dealers' Association (BAFEDA).
"The inward remittance flow may switch to informal channels from official ones, if the gap continues over long-term," a senior official of a leading private commercial bank (PCB) told the FE.
He also urged the policy-makers for taking effective measures to minimise the gap between the two rates for ensuring the existing upward trend in inward remittance flow in the coming months.
The central bank has already strengthened its monitoring and supervision to bring down the exchange rate of cash US dollar at a reasonable level.
"We've been informed about the high rate of cash dollar in the market," a senior official of Bangladesh Bank (BB) told the FE.
He also said BB may consider import of cash US dollar to meet the growing demand for the greenback in the market.
Sources, however, said the rate of cash US dollar normally increases in the market when illegal transactions like smuggling and under-invoicing go up.
The existing exchange rate of cash dollar in the open market indicates that some developments like those are taking place in the shady economy ahead of the general election, they opined.
The greenback was traded in the open market in the capital at prices between Tk 86.50 and Tk 86.70 on the day, according to the traders.
- Courtesy: The Financial Express /Oct 24, 2018
No comments:
Post a Comment