Dollar climbs to Tk 128.50 in open market, bank rates rise too

The price of the dollar has suddenly started rising in the open market. Alongside cash dollars becoming costlier for reasons including the Puja holidays, the dollar price has also risen through banking channels, pushing up import costs. Prices of other foreign currencies have increased as well because of the dollar's rise.

Banks are now selling cash dollars at Tk 126.50. In the open market, each dollar has risen to Tk 128.50.

A review of banks' declared rates showed that last Thursday City Bank bought cash dollars from people returning from abroad at Tk 124.75 and sold them at Tk 126. On the same day, BRAC Bank bought dollars from returning travellers at Tk 125.50 and sold them at Tk 126.50.

On the same day, United Commercial Bank (UCB) bought dollars at Tk 125 and sold them at Tk 126.25. Agrani Bank, however, bought cash dollars at Tk 123 and sold them at Tk 124.

Meanwhile, the price of dollars bought for imports at banks has also risen. On October 19 banks bought dollars from each other at a maximum of Tk 123.60, which rose to Tk 123.99 last Thursday. During this period the price rose by 5 to 20 paisa every day.

Although the bank rate stayed within Tk 126.50, the retail market price was higher. On Thursday, dollars were sold at Tk 128.50 in the open market and money changers in Motijheel, while money changers bought dollars from customers at a maximum of Tk 128.

Bangladesh Bank and bank officials said passenger travel from abroad has fallen significantly since the Middle East crisis, creating somewhat of a dollar shortage in the open market.

Even 10 days ago, each dollar cost Tk 127 to Tk 127.50 in the open market. In the space of 10 days the open-market price has risen by up to Tk 1, and bank prices have also risen by up to Tk 1 over the same period.