Bangladesh Bank has verbally directed several banks to offer higher exchange rates for US dollars to attract remittances through formal channels. This initiative aims to counter a potential decline in remittance inflows for July, which has been impacted by a recent five-day internet blackout that disrupted banking and mobile financial services.
The central bank instructed about a dozen key banks to offer rates higher than the previously capped Tk 118 per dollar under the crawling-peg system. Consequently, many banks have raised their rates to between Tk 118.50 and Tk 118.70 per dollar. As of July 13, Bangladesh received $978 million in remittances, significantly lower than the $2.54 billion collected in June. The forex crisis, persisting for over two years, has prompted this strategic adjustment to ensure a steady inflow of remittances.
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