Following directives from the central bank to raise interest rates in an effort to encourage more remittances through the legal channels, banks have raised the value of the US dollar to Tk119.40.
On Monday, July 29, more than a dozen banks raised the US dollar conversion rate for remittances, while the amount of remittances from overseas workers has decreased since the final week of July.
According to bank officials, the recent student quota reform demonstration and the shutdown of internet connectivity had an effect on the flow of inward remittances.
The Bangladesh Bank verbally instructed banks on Sunday to buy remittance dollars even at higher rates in order to increase the flow of remittances.
The remittance dollar rate increased as a result on Monday, rising by 60–70 basis points in a single day.
