Dollar price in Bangladesh has surged rapidly, increasing by over Tk3 in just two days, creating significant economic concerns.
Currently, dollar is trading at Tk125 to Tk125.5 in open market, despite Money Changers Association of Bangladesh is setting a retail price of Tk119 per dollar.
This price hike is mainly driven by a decline in remittance inflows, which has put additional pressure on the country's foreign reserves. The slowdown in remittances has exacerbated the dollar crisis, leading to a sharp rise of dollar price in open market rates.
On Thursday last week, in key areas of Dhaka like Dilkhusa, Paltan, Fakirapool, and Motijheel, money changers were seen selling dollars well above the fixed price. The Money Changers Association admitted that their inability to enforce the official rate, citing a lack of supply from expatriates as a critical issue.
A leader from the association stated that money changers would adhere to official price if banks provide dollars at a rate of Tk118. However, due to the current supply constraints, the open market prices remain high.
Bangladesh Bank has responded by launching raids on various money changer firms to curb the volatility. Previous efforts to stabilize market have included similar operations with several firms fined and sealed.
The ongoing dollar crisis reflects broader economic challenges and underscores the need for stronger regulatory measures to stabilize the currency market, market sources said.
