Banks can set dollar rates for remittances, LC: BB

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The Bangladesh Bank (BB) has withdrawn the provision of a fixed rate for dollars for remittances and letters of credit (LC).

However, the central bank will sell dollars at a fixed rate, a senior Bangladesh Bank official said.

He also said that the rates set by BB for remittances and letters of credit (LC) have been withdrawn. Banks can set rates on their own initiative.

A senior treasury department official from a state-owned bank said the rate set by Bangladesh Bank for collecting remittances would have a major impact. Thus, the rate was raised by the central bank.

However, banks have been asked to be vigilant so that the price of the dollar does not rise sharply. Exchange offices have been requested to ensure the same.

Serajul Islam, spokesman for Bangladesh Bank, said commercial banks in the country have already been told that they can set the dollar price themselves depending on the market.

“The decision was taken in view of a decrease in remittances through formal channels and the plight of exporters. The rate was left to be set according to the market price to give priority to foreign currency acquirers in the volatile context of the international market “Sérajoul Islam.

He also said that a few teams have been tasked with monitoring banks and supervising the banks’ foreign currency exchange.

When asked if lifting the dollar rate cap would affect inflation, he said inflation was also on the rise in other parts of the world.

“We are not out of the system. However, inflation can be controlled with some tools other than the dollar price. We are currently monitoring the situation and further action will be taken accordingly,” the spokesperson said. the BB.

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