The upcoming Ramadan has driven up the demand for imported goods, while pending LC (Letter of Credit) payments have also increased. At the same time, outbound travel has risen, leading to a sharp surge in dollar demand, which has not been met with an adequate supply.

To address this demand, banks are purchasing remittances at prices at least 8 BDT higher than the declared rate of 120 BDT per dollar, creating ripple effects in the open market.

Bank officials report that the pressure to settle import liabilities has intensified suddenly, causing the dollar`s price to rise. Economists are concerned that this situation might further fuel price inflation.

Investigations reveal that banks are purchasing remittances at up to 128 BDT per dollar, while the official rate set by the central bank is 120 BDT. In the curb market, the dollar price has surged to 129 BDT, compared to 123-124 BDT just a week ago.

On Sunday, December 22, this information was confirmed by visiting various banks and money changer houses in Motijheel and Dilkusha in Dhaka.

The sudden spike in demand has allowed unscrupulous groups to exploit the situation, further destabilizing the dollar market. In response, the central bank has sought dollar transaction records from at least 13 suspicious banks and intensified monitoring efforts to stabilize the foreign currency market.

Unnamed banking officials stated that Bangladesh Bank has instructed banks to settle old import liabilities within this month, prompting banks to buy dollars at higher rates. This has resulted in increased remittance inflows, with over $2 billion received in the first 21 days of the current month.

Consequently, the total reserve now stands at $24.95 billion. Based on BPM (Balance of Payments Manual) calculations advised by the IMF, this equates to $19.95 billion, while the usable reserve is approximately $15.14 billion.

Data from Bangladesh Bank indicates that the maximum dollar rate for banks is currently capped at 120 BDT, up from 118 BDT in June and 110 BDT in December 2023—a rise of 10 BDT within a year. Comparing this to market realities, the increase amounts to 18 BDT.

According to Ansari, a sales representative at a currency exchange house in Motijheel, dollars are being bought at 127.50 BDT and sold at 128.30 BDT, with evening rates reaching 129 BDT. Just 10 days ago, dollars were traded in the open market for 123-124 BDT. The December holiday season has contributed to this surge in demand, as many people are traveling abroad.

Bangladesh Bank`s spokesperson and Executive Director, Husne Ara Shikha, stated that a special team has been formed to investigate the instability in the dollar market. Monitoring has been intensified, and suspicious banks have been asked to submit transaction details. Some banks have already submitted their reports, and further actions will be determined based on the findings.