Bangladesh Banks Raise Dollar Selling Rates as Remittance Purchase Costs Increase

Commercial banks in Bangladesh have increased the selling price of the U.S. dollar to customers after raising the rates they pay to purchase remittance dollars from expatriate Bangladeshis.

On Monday, banks bought remittance dollars at rates ranging between Tk 123.85 and Tk 123.90 per dollar. They sold dollars to customers at Tk 123.95 per dollar. The exchange rate in the interbank market also edged higher, with the highest recorded rate reaching Tk 123.82 per dollar.

Bankers say demand for dollars has risen due to increased imports by businesses and the government's higher volume of letters of credit (LCs). To meet the growing demand, banks have been sourcing dollars at higher prices, leading to increased competition in purchasing remittance inflows.

On Sunday, banks purchased remittance dollars at rates between Tk 123.85 and Tk 123.90 per dollar. Interbank exchange rates also showed an upward trend.

Monday's interbank transactions recorded a peak exchange rate of Tk 123.82 per dollar, up from Tk 123.60 recorded last week. During the same period, the highest rate paid for remittance dollars rose from Tk 123.75 to Tk 123.90 per dollar.

The value of export proceeds has also increased, prompting banks to raise the selling price of the U.S. dollar. On Monday, most banks sold dollars for import-related letters of credit at rates between Tk 123.90 and Tk 123.95 per dollar, with the average selling rate standing at Tk 123.92. By comparison, the average rate last week was Tk 123.75 per dollar.

Meanwhile, Bangladesh Bank expects that offering higher exchange rates for remittance dollars will encourage expatriate Bangladeshis to send more money through formal banking channels. The central bank also anticipates a positive impact on export earnings as a result of the improved exchange rates.