The decision of the Association of Bankers, Bangladesh (ABB) and the Bangladesh Foreign Exchange Dealers’ Association (Bafeda) to devalue the dollar by Taka 0.50 has been applauded by Bangladesh Bank (BB).
“In the last several months, we closely monitored the demands for imported products and their supply. Our observations reveal a surplus in the current account balance. Although our financial account is currently in deficit, it is anticipated to improve in the upcoming days, with debt payments gradually decreasing,” said BB Spokesperson Mezbaul Haque at a press conference at the central bank headquarters in the city.
“As debt repayments reduce, our demand for dollars will ease. Most letters of credit are now settled at sight, maintaining control over the demand for dollars in imports,” he added.
He said remittances are on the rise, ensuring a healthy supply of foreign exchange.
Haque noted that the Net Open Position of all banks is positive and that there is a sufficient supply of dollars. He continued, saying that BAFEDA’s choice to devalue the dollar by Taka 0.50 per dollar was considered wise.
The price of buying dollars for export proceeds and remittances dropped to Taka 110 from Taka 110.50 in accordance with the decisions made by BAFEDA and ABB, and the price of selling dollars for import settlements was set at Taka 110.50 from Taka 111 previously.
This marks the first adjustment in the dollar price since August 2021 when the Bangladesh Bank was setting the price. Since September of the same year, BAFEDA and ABB have been jointly determining dollar prices to stabilize the exchange rate, making this recent move a significant step in managing the currency’s valuation.
