USD turns 5% costlier in 2 weeks

The price of each US dollar has gone up by around 5 percent in the kerb market over the past two weeks amidst volatility in the foreign exchange market triggered by the recent violence stemming from the quota reform movement.

Each US dollar was selling for Tk 124 to Tk 125 in the open market in Dhaka yesterday whereas it was Tk 118 to Tk 119 two weeks back, according to market insiders.

The forex market has been volatile owing to a sudden reduction in remittance inflow as remitters could not send the greenback through banking channels due to an internet blackout, said money exchangers.

On top of that, the number of expatriates returning home over the last couple of weeks was low, deepening the crisis, as they usually bring along US dollars to sell at the kerb market.

Each dollar was selling for Tk 124 to Tk 125 in the open market in Dhaka yesterday whereas it was Tk 118 to Tk 119 two weeks back

As a result, the price has increased, the market insiders said.

Seeking anonymity, a money exchanger in Dhaka's Mirpur area said each US dollar was trading between Tk 118 and Tk 119 in the open market two weeks ago.

Following the student movement, the price started to increase, with each dollar trading for Tk 122 on Monday and then Tk 125 yesterday.

However, MS Zaman, president of the Money Changers' Association of Bangladesh, claimed that members of his association were selling each dollar at Tk 119.

"I have visited many offices of money changers in different areas of the capital, including Motijheel, Paltan and Dilkusha, and found them selling each greenback at Tk 119," he said.

He also said there was a small crisis in the market as people could not return home from abroad over the past couple of weeks.

"Usually, we buy US dollars from the people who return to the country and then sell those to people who are going abroad. If people can't come back home, then who will we buy dollars from?" he asked.

Zaman said they had also issued a press release asking their association members to sell each US dollar at Tk 119 and that the association would take "necessary measures" against anyone not doing so.

Meanwhile, banks continue to sell each US dollar at the previous price of Tk 118.

A student scheduled to go to the US next week to pursue a master's programme said he struggled to manage dollars yesterday as some banks expressed unwillingness to provide it.

"Finally, I managed some dollars from a private bank with the help of one of my relatives, who has good relations with the high-ups of the bank, at Tk 119 per US dollar," he said.

According to Bangladesh Bank, only $13.8 million in remittance came to the country through formal channels in the seven days since July 21, with banks staying closed for the first three days for a general holiday declared by the government.

Apart from this, there was no broadband internet service for five consecutive days and mobile internet service for 10 days.

Besides, the government enforced a curfew from the night of July 19 amidst violence centring the students' movement for amendment to the country's quota system for government jobs.