Dollar crisis deepens in kerb market

Staff Reporter :
The dollar crisis has deepened in the kerb market as Bangladesh Bank (BB) and law enforcers raided the money exchange houses amid allegations of profiteering by charging higher exchange rates.

Earlier in last week, the central bank has suspended seven moneychangers’ licenses for selling dollars in the kerb market at a price higher than the fixed rate.

In such a situation, money exchange institutions have almost stopped selling dollars due to fear of punishment.

As a result, there is a shortage of dollars in the open market.

While visiting Motijheel, Paltan, Baitul Mukarram areas of the capital yesterday it is seen that the money exchanges have taken the dollar off the market completely.

Even offering Tk 120 per dollar the exchange houses are resolutely stating they have no dollar to sell.

Same information was also found by searching in different areas of the capital, including Gulshan Banani.

Many other money exchange houses and individual floating traders of the US dollar were seen passing idle time on Sunday due to the supply crisis of the dollar.

Meanwhile, most commercial banks are also not selling cash US dollars to travelers, forcing them to turn to the kerb market to avail foreign currencies.

Those Travelers, visitors and students are struggling to buy American greenback due to the shortage in kerb market, yesterday.

It is reported in recent weeks the unofficial kerb market rate of dollars was much higher than its official exchange rate against Bangladesh currency fixed by Bangladesh Bank.

In the last two weeks, the exchange
rate of the US dollar in the kerb (open) market reached Tk117 to 118 per dollar from Tk112.

However, according to the last decision taken in a meeting between the central bank and the Money Changers Association of Bangladesh, the money changers can maintain a maximum difference of Tk1 compared to the commercial banks in buying and selling dollars.

Currently, banks are selling dollars at Tk111.50 each.

It is alleged money changers are displaying a foreign currency price list where the USD selling rate was cited to be Tk 112 and the buying rate was quoted as Tk 110.50, but the rates are hardly followed.

Replying to a query about the dollar crisis in the kerb market, Bangladesh Bank Executive Director and Spokesperson Mesbaul Hoque said that the dollar is being traded, but not everyone is selling it. Only those who have dollars are selling.

A number of Money changers buy from one person and sell to another, among them a person wishing not to be named informed on Sunday that I could not buy any Dollar even at Tk115, how can it be possible to sell dollars at Tk 112-113, he questioned.

Habib Hussain came to Palton areas to buy dollars as he has to go to India on September 11.

He visited several banks to buy dollars for expenses but did not get any.

“Now came to the money changer, no dollars here either even agree to buy at such steep rates.

Hussain now expressing concern that how can I go abroad without dollars?