Bangladesh's central bank mulls exchange rate hike amid fall in forex reserves

[Imran Khan]

Bangladesh's central bank mulls exchange rate hike amid fall in forex reserves​

Source: Xinhua

Editor: huaxia

2022-11-24 20:42:15


DHAKA, Nov. 24 (Xinhua) -- Bangladesh's forex reserves reached 34.10 billion U.S. dollars on Nov. 23, declining from 34.30 billion dollars on Nov. 17, showed the latest Bangladesh Bank (BB) data.
The foreign currency reserves fell again in recent days, after a slight rise, due mainly to an increased demand for the U.S. dollar for meeting import-payment obligations, local leading English newspaper The Financial Express reported Thursday.
The reserves hit 35.72 billion dollars on Nov. 1, but started falling after a regular bi-monthly payment of over 1.30 billion dollars to the Asian Clearing Union (ACU) on Nov. 8.
After that, the reserves moved up slightly again to reach 34.30 billion dollars on Nov. 17 from 34.25 billion dollars on Nov. 9 because of comparatively lower import payments during the period.
A central bank official said the reserves declined by around 200 million dollars in the last five days.
He said the banks' demand for the greenback continued to grow to meet their foreign payment obligations, and on the other hand, the earnings from exports and remittance were on the wane.
"These are probably the reasons behind the fall of the forex reserves," the officer said, adding that the bank was planning to raise the exchange rate of the Bangladeshi currency, the taka, against the U.S. dollar, and that would mean a U.S. dollar will be traded at 100 taka, up from the existing 98 taka by the end of the calendar year.
"It would help protect the reserve a bit as buying dollars from the central bank is still comparatively lower than the interbank rate," said the official who preferred to be unnamed. ■

Bangladesh's central bank mulls exchange rate hike amid fall in forex reserves

Bangladesh's central bank mulls exchange rate hike amid fall in forex reserves-

english.news.cn

 

[BananaRepublicUK]

Bangladesh's central bank mulls exchange rate hike amid fall in forex reserves​

Source: Xinhua

Editor: huaxia

2022-11-24 20:42:15


DHAKA, Nov. 24 (Xinhua) -- Bangladesh's forex reserves reached 34.10 billion U.S. dollars on Nov. 23, declining from 34.30 billion dollars on Nov. 17, showed the latest Bangladesh Bank (BB) data.
The foreign currency reserves fell again in recent days, after a slight rise, due mainly to an increased demand for the U.S. dollar for meeting import-payment obligations, local leading English newspaper The Financial Express reported Thursday.
The reserves hit 35.72 billion dollars on Nov. 1, but started falling after a regular bi-monthly payment of over 1.30 billion dollars to the Asian Clearing Union (ACU) on Nov. 8.
After that, the reserves moved up slightly again to reach 34.30 billion dollars on Nov. 17 from 34.25 billion dollars on Nov. 9 because of comparatively lower import payments during the period.
A central bank official said the reserves declined by around 200 million dollars in the last five days.
He said the banks' demand for the greenback continued to grow to meet their foreign payment obligations, and on the other hand, the earnings from exports and remittance were on the wane.
"These are probably the reasons behind the fall of the forex reserves," the officer said, adding that the bank was planning to raise the exchange rate of the Bangladeshi currency, the taka, against the U.S. dollar, and that would mean a U.S. dollar will be traded at 100 taka, up from the existing 98 taka by the end of the calendar year.
"It would help protect the reserve a bit as buying dollars from the central bank is still comparatively lower than the interbank rate," said the official who preferred to be unnamed. ■

Bangladesh's central bank mulls exchange rate hike amid fall in forex reserves

Bangladesh's central bank mulls exchange rate hike amid fall in forex reserves-

english.news.cn

I think the current policy of favourable rates for legitimate importers/exporters and “kerb market” for the goons is the right policy.

Currency controls has been a success for China - and it can work for BD as well.

Only the US wants free floating in order to maintain their hegemony!

BB must resist the pressure.

 

[Imran Khan]

I think the current policy of favourable rates for legitimate importers/exporters and “kerb market” for the goons is the right policy.

Currency controls has been a success for China - and it can work for BD as well.

Only the US wants free floating in order to maintain their hegemony!

BB must resist the pressure.

dollar in open market is 115 to 120 taka per USD
if bd gov want to fix it then make inter bank and open market rates equal .

 

[BananaRepublicUK]

dollar in open market is 115 to 120 taka per USD
if bd gov want to fix it then make inter bank and open market rates equal .

Bangladesh has always maintained strict currency controls to ensure precious foreign currency is only used for import of necessities.

This policy was enacted under Saifur Rahman and has been followed by every finance minister since.

Ofcourse political goons get exceptions to import their luxuries.

Hence there is no such thing as open market rates.

Licensed importers and exporters get it from BB.

And unlicensed goons get it from the “kerb market”.

That has always been the case.