The exchange rate of the taka and the US dollar is going to be turned more flexible in line with suggestions of International Monetary Fund (IMF), according to Bangladesh Bank.
The chief executives of at least three private commercial banks told The Daily Star that the BB had verbally allowed them to quote Tk 1 more than the exchange rate to collect US dollars amid the ongoing forex crunch.
This is nothing more than a poor trick that will eventually produce no real gain.
Beneficiaries of wage earner remitters receive a 2.50 percent cash incentive on top of the market-determined exchange rate for any amount of remittance inflow.
The Bangladesh Bank has asked 10 banks’ managing directors why their treasury heads should not be penalised for their involvement in dollar rate manipulation this year.
Bangladesh’s conglomerates have lost Tk 65,000 crore over the past one year because of the fluctuation of the value of the taka against the US dollar as loans have become costlier due to the volatile global economy, said a noted economist yesterday.
The major challenges for Bangladesh will be keeping inflation under control while maintaining currency rate stability in the coming days, according to the Bangladesh Bank's annual report.
Bangladesh does not have too many policy options other than reducing consumption of goods and services and making the exchange rate flexible in order to ensure macroeconomic stability, said a central bank report.
This fiscal year alone, the Bangladesh Bank has supplied more than $4.5 billion to the market to support the exchange rate, while the import bill averages $6 billion a month.
The exchange rate of the taka and the US dollar is going to be turned more flexible in line with suggestions of International Monetary Fund (IMF), according to Bangladesh Bank.
The chief executives of at least three private commercial banks told The Daily Star that the BB had verbally allowed them to quote Tk 1 more than the exchange rate to collect US dollars amid the ongoing forex crunch.
This is nothing more than a poor trick that will eventually produce no real gain.
Beneficiaries of wage earner remitters receive a 2.50 percent cash incentive on top of the market-determined exchange rate for any amount of remittance inflow.
The Bangladesh Bank has asked 10 banks’ managing directors why their treasury heads should not be penalised for their involvement in dollar rate manipulation this year.
Bangladesh’s conglomerates have lost Tk 65,000 crore over the past one year because of the fluctuation of the value of the taka against the US dollar as loans have become costlier due to the volatile global economy, said a noted economist yesterday.
The major challenges for Bangladesh will be keeping inflation under control while maintaining currency rate stability in the coming days, according to the Bangladesh Bank's annual report.
Bangladesh does not have too many policy options other than reducing consumption of goods and services and making the exchange rate flexible in order to ensure macroeconomic stability, said a central bank report.
This fiscal year alone, the Bangladesh Bank has supplied more than $4.5 billion to the market to support the exchange rate, while the import bill averages $6 billion a month.
The interest rate cap on loans, the frequent changes to the exchange rate regime and a relaxed attitude to enforcing austerity measures are the major challenges facing Bangladesh in restoring stability in the economy.
