Dollar rates for LC settlement rise to Tk 123 amid energy import price surge
Business Report :
Commercial banks asked top business groups on Tuesday to pay higher rates for dollars to settle letters of credit (LCs) compared to the recent days.
Senior officials from several leading business conglomerates said banks are demanding an additional 15 to 20 paisa than Monday for LC settlement.
On Tuesday, commercial banks were seen purchasing remittance at a maximum rate of Tk 122.95 per dollar.
Consequently, the exchange rate for settlement of import letters of credit (LCs) has climbed to Tk 123, according to banking sources.
Just a week ago, the dollar rate for imports stood at approximately Tk 122.50. The recent jump of nearly 50 paisa per dollar has sparked concerns among businesses.
A senior official of a leading business group said that when they contacted several banks Tuesday morning, they asked for rates ranging from Tk122.80 to Tk122.90 for LC settlement. Especially, the top-tier banks are demanding higher prices than the previous day.
According to traders, the increase in the dollar price increases the cost of imports, which directly affects the price of goods in the market.
An official of a private organization said: “The increase in the dollar price increases the costs of importers. As a result, there is a risk of increasing the price of goods at the consumer level as well.”
Banking sector officials also say that the central bank’s position on the dollar market and the strategy of maintaining reserves are having some impact on the market in recent times.
The deputy managing director of a private bank said that the dollar market has been relatively stable for more than a year and a half and no artificial crisis has been created. However, in the current situation, the central bank’s vigilance is necessary to ensure that instability does not arise in the market.
He also said that recently, in a meeting of economists with the governor, the issue of giving importance to preserving foreign exchange reserves was raised.
As a result, a message has been sent to the market that even if there is some pressure on the dollar in the future, the central bank may not sell dollars directly in the market.
In this situation, banks are trying to ensure dollar supply from their own sources to pay for imports. For this, bank officials also said that they are buying remittance dollars at higher prices than before and keeping them with them.
According to bankers, the dollar market is very important for the country’s macroeconomics. If there is instability in this market, it can affect various sectors including import costs, inflation and business activities. Therefore, it is important for Bangladesh Bank to effectively monitor and take necessary steps to keep the dollar market stable.
Earlier on sunday the country’s foreign exchange reserves have once again fallen below $30 billion, following the payment of $1.37 billion in bills to the Asian Clearing Union (ACU).
After the ACU payment for January and February, the reserves on Sunday stood at $29.38 billion according to BPM6 method and the gross forex reserves became to $34.10 billion.
