- June 2, 2022
- Posted by: Stratford Team
- Category: Economy
This means the price of the dollar in the market will be determined by demand and supply and banks will be allowed to set their own dollar prices.
The new decision, effective from Thursday, ends the previously fixed interbank exchange rate of Tk 89 against the greenback.
“The price of the dollar will be set by the open market,” Bangladesh Bank Executive Director Md Serajul Islam told bdnews24.com. “Bankers have said that, without this step, remittances will fall.”
Despite allowing the currency to float, Bangladesh will still monitor the price, Islam said.
Macroeconomists and analysts are saying the central bank has been using the tool of devaluation to put a brake on the depletion of foreign exchange reserves, which stand at $42 billion now.
Bangladesh had a record $48.02 billion in August last year, sufficient to pay import bills for up to one year, but a steady decline has brought it down to the current $42 billion.
According to them, the dual…
