Dollar hits Tk 123 for first time in inter-bank trade

The US dollar hit Tk 123 today in the interbank market, reflecting further weakening of the taka two weeks after the central bank moved to a market-driven exchange rate for the purchase and sale of foreign currencies.

Banks traded each dollar at Tk 122.90-Tk 123 for interbank transactions, whereas just a couple of days ago it was Tk 122, according to the Bangladesh Bank (BB).

A majority of banks are now selling US dollars to importers at Tk 122.90 to Tk 123 while buying them from exporters and exchange houses at rates between Tk 122.50 and Tk 122.80, bankers said.

Central bank officials said the banking regulator is monitoring the foreign exchange market, which is now stable due to the growing inflow of US dollars from high remittance and export earnings.

A treasury head of a private bank, speaking on condition of anonymity, said the central bank and other authorities have instructed all parties to act sensibly under the current circumstances.

Since Eid-ul-Azha is approaching, the flow of US dollars is expected to increase, the official added.

As part of the market-driven exchange rate, the central bank on May 14 lifted the Tk 1 spread between buying and selling rates of the US dollar by repealing a directive issued in January this year.

At the same time, it reinstated a circular issued in December 2024, allowing banks to "freely" negotiate the US dollar rate for both interbank and customer transactions.

That marked a formal return to a pricing framework driven by demand and supply.