The Bangladesh Bank (BB) has raised the crawling-peg rate by Tk 2, setting it at Tk 119 from Tk 117 to stabilize the dollar market.
Banks may add 1% profit during sales, and an additional 2.5% may apply for foreign remittance purchases, as per regulatory limits.
While the central bank enforces strict compliance, economists question the move’s effectiveness. Dr. Mashrur Reza, chairman of Policy Exchange Bangladesh, criticized the non-competitive exchange rate mechanism, suggesting a demand-driven approach for stability.
He also emphasized monitoring illegal dollar trading, curbing over-invoicing, and addressing dollar smuggling.
Since adopting the crawling peg system on May 8, the dollar rate has risen sharply, initially jumping from Tk 110 to Tk 117. Under this system, exchange rates fluctuate within a predefined range, reducing abrupt market volatility.
However, critics note that despite such measures, the dollar’s value has surged from Tk 84 to Tk 123 in recent years, reflecting ongoing challenges in exchange rate management.
