Following Bangladesh Bank’s implementation of the ‘crawling peg’ system to determine the dollar exchange rate, banks have ceased their additional incentives on expatriate income. The new system fixes the intermediate rate of the dollar at Tk 117, compared to the previous official rate of Tk 110. Despite the government’s 2.5% incentive, the dollar price for expatriate income now ranges between Tk 117 and Tk 117.50. Previously, banks offered an additional 2.5% incentive, potentially raising the dollar price to Tk 123. The decision to halt these incentives came after discussions between the Bangladesh Foreign Exchange Dealers Association (BAFEDA) and the Association of Bankers, Bangladesh (ABB) last October. Despite these efforts, there has been limited improvement in expatriate income. However, banks will independently decide on future actions. Despite fluctuations in expatriate income, the government’s incentives remain unchanged, subject to government decisions.
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