Following the Central Bank’s initial instruction nearly two working days after banks resumed operations post-unrest, banks were advised to potentially increase the dollar rate for remittances. However, just three days later, the Central Bank verbally instructed them not to raise the rates and warned of strict fines if this directive was not followed. According to a bank’s Deputy Managing Director, this verbal warning was accompanied by a stern warning about penalties.
A policymaking banker commented that the Central Bank seems to underestimate the impact of these phone calls, with ongoing intervention affecting their policies. He pointed out that in September 2023, remittances totaled only USD 1.33 billion, compared to an average of USD 2 billion, partly due to such interventions.
Currently, the MoneyGram rate stands at 120.58 BDT, Western Union at 119.50 BDT, and bank rates have risen from 118.60 BDT to 119.50 BDT following Sunday’s instruction. Reports indicate that the rate in the kerb market is between 124 and 125 BDT.
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