The price of the dollar on Monday reached its highest peak in the country’s history, selling at Tk115.4 in the kerb, or open, market.
Price of the greenback jumped almost by the hour, reaching Tk113 in the afternoon and crossing Tk115 by 6:00pm.
Although export earnings fell in July compared to June, remittance figures reached the highest in 14 months and on the other hand, the ratio of letter of credit (LC) opening fell, which was expected as the exchange rate of the dollar weakened slightly.
However, the scenario was the opposite on that day.
On Sunday, the price of the dollar was Tk111-111.5 in the kerb market.
Monday’s latest rate meant that the Taka was devalued by Tk4 in just a day.
Speaking to some banks, their LC rate was Tk95, the cash-buying rate was Tk103.5 and the cash-selling rate was Tk105.5, meaning, the difference between the banking channel and the kerb market has now increased to Tk10.
The information was obtained after talking to several money exchangers and a few bankers.
On Monday, according to central bank, the interbank rate of the dollar was fixed at Tk94.7
LC settlements fall in July
The opening of letters of credit (LC), generally known as import orders, was $6.58 billion in July, down from $7.53 billion in the previous month of June.
Settlements fell by 9.23% during the one-month period, according to the latest data from Bangladesh Bank.
Besides, banks opened LCs worth $5.55 billion in July, a decrease from the $7.96 billion registered in June.
As a result, the LC opening decreased by 30.2% in July.
Earlier on July 14, the central bank started monitoring LCs worth $5 million and above initially, using its dashboard, to discourage ‘unnecessary’ imports.
Currently, the central bank monitors LCs worth $3 million and above.
The report also shows that in the first month of this calendar year, LCs worth $6.85 billion were settled, $6.55 billion in February, $7.67 billion in March, $6.93 billion in April, $7.25 billion in May, $7.75 billion in June and $6.58 billion in July.
Remittances hit 14-month high
In July–the first month of FY23, $2.09 billion in remittances came through the banking channel, the highest in the last 14 months.
Remittance flow to Bangladesh rose 11.76% year-on-year, as migrant workers sent home $1.87 billion in July last year.
July receipts were the highest in 14 months and up 14% from a month ago, Bangladesh Bank data showed.
In July, $330 million in remittance was channeled to Bangladesh through state-run commercial banks, $32.42 million through state-run specialized banks, $1.78 billion through private banks, and $6.64 million through foreign banks.
Affecting export earnings
The first month of the current financial year saw a big shock in export earnings as it decreased by $930 million from $4.91 billion in June.
According to Export Promotion Bureau’s (EPB) latest data, in July it was $3.9848 billion, meaning the export income decreased by 23.5% in one month.
However, the export income increased by 14.72% compared to July 2021 and at the same time, the export income reached 1.65% more than the target.
