Forex market volatility: Banks to suggest uniform exchange rates

The Bangladesh Bank today asked banks to suggest uniform exchange rates of the taka against the US dollar in order to bring back the stability in the country's foreign exchange market.

The central bank will take final decision to this end after assessing the rates recommended by the banks.

The decision came from a tripartite meeting organised by the Bangladesh Bank with the Association of Bankers, Bangladesh (ABB) and Bangladesh Foreign Exchange Dealers' Association (BAFEDA).

BB Governor Fazle Kabir presided over the meeting in presence of the leaders of the ABB and BAFEDA.

The banking regulator has asked the BAFEDA, an organisation of the banks involved in doing foreign exchange related business, to fix the interbank exchange rate, which will be assessed and finalised by the central bank, said Md Serajul Islam, spokesperson of Bangladesh Bank.

The interbank exchange rate of the taka stood at $87.9 a dollar today, up 3.65 per cent year-on-year.

The central bank depreciated the local currency six times this year amid volatility in the country's foreign exchange market stemming from the ongoing global crisis. 

Both the ABB, a platform of managing directors of banks, and the BAFEDA will work together to fix a uniform exchange rate of the taka for exchange houses located abroad, Islam said.

The rate will have to be followed by all banks while providing rate to the receivers of remittances.