In the past week, the US dollar has lost about Tk 2.90 in the local market, dropping from Tk 122.80 to Tk 120 per dollar, as most banks offered lower rates for buying remittance dollars. Some offered as low as Tk 120, while others capped at Tk 120.50. Earlier in the week, rates were as high as Tk 122.90.
This drop is mainly due to:
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Low dollar demand from banks.
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Improved inflow of remittance and export earnings.
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Reduced import LC openings, especially for capital goods and raw materials due to stagnant investment.
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Banks now prefer to sell dollars rather than hold them, anticipating further price drops.
Bank officials and foreign exchange houses confirmed the shift in dynamics. Where banks once scrambled to buy it, now they hesitate to purchase even large offers. Some banks reportedly declined multi-million deals, anticipating lower rates in the future.
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The foreign exchange reserve also slightly declined from $26.66 billion on June 30 to $26.51 billion on July 3.
Since May, the Bangladesh Bank moved to a market-based exchange rate system under IMF conditions, which contributed to this adjustment. If Bangladesh Bank resumes buying it from the market, the rate might slightly rise again.
Overall, with stable remittance and export inflows and slow import demand, the price may continue to fall slightly in the short term.
