Interbank foreign exchange turnover, which declined by nearly 9.0% year-on-year in the first nine months of FY 2023-24, is showing signs of recovery with the introduction of the crawling-peg system. During July-March FY 2023-24, forex turnover amounted to $16.7 billion, down from $18.3 billion in the corresponding period of FY 2022-23, indicating liquidity challenges in the market. The crawling-peg adjustment to Tk 117 per US dollar in May 2024 has revived interbank activity, previously hindered by a significant gap between Bangladesh Bank’s and market rates. Spot transactions increased by 9.7%, albeit accounting for only 4.9% of total turnover, while swap transactions, constituting 94.8%, decreased by 9.6%. Analysts anticipate a rebound in forex turnover as market dynamics stabilize under the new exchange rate regime.
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