Sat, 08 Oct 2022

© Provided by Xinhua

DHAKA, Aug. 19 (Xinhua) -- The central bank of Bangladesh has fixed a ceiling on U.S. dollar trading profit for money exchangers, amid a lingering greenback supply shortage and its appreciation against the country's currency taka.

After a meeting with the Money Changers' Association in Dhaka, Bangladesh Bank (BB) spokesperson Serajul Islam told reporters that no money exchangers in the country can now charge over 1.5 taka against a U.S. dollar while buying and selling the greenback.

Days earlier the central bank capped the gap between U.S. dollar buying and selling rates at 1 taka for the banks.

The decisions come amid speculations that the country is in dire need of foreign loan support under a mounting economic pressure caused by external factors such as Russia-Ukraine conflict and the COVID-19 pandemic.

© Provided by Xinhua

In a bid to boost shrinking forex reserves which fell below 40 billion U.S. dollars, the central bank in recent months announced a series of austerity measures, including curbs on the import of luxury goods.

Besides, the authorities increased surveillance over the open market along with the banks in efforts to control dollar-taka exchange rates.

The price of one U.S. dollar escalated to around 120 taka days ago for the first time. The authorities then launched raids on money exchanger houses and the central bank intensified its monitoring.

Increasing imports and a widening trade deficit were cited as possible reasons for taka depreciation.

Bangladesh's trade deficit ballooned to a record level of over 33 billion U.S. dollars in the fiscal 2021-22 which ended June 30 on the back of increased imports, showed the latest central bank data.

According to the central bank data, the country's imports payment was 82.50 billion dollars, up 35.95 percent, in the last fiscal year, while earnings from exports stood at 49.25 billion dollars, up 33.45 percent, during the same period.

More Macau News

Access More

Sign up for Macau News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!