The Financial Express

Dollar continues to be pricier vis-a-vis Taka in kerb market

| Updated: October 28, 2021 18:05:17

Dollar continues to be pricier vis-a-vis Taka in kerb market

The price of US dollar continued to surge unabated in the kerb market on Tuesday, frustrating many, especially the outbound people.

The value of the greenback, which crossed Tk 90 mark for the first time on Monday, further spiked by 20 paisa on Tuesday.

Market insiders, however, attributed such rise in value of dollar to its increased demand in recent times amid increased business activities and tourism.

But the central bank's interbank dollar exchange rate on Tuesday was Tk 85.65, although many said they bought the same from banks at much higher rate the same day.

Banks come to buy currencies from the kerb market at a time when they have less than the amount of forex needed to meet such payments.

"Our business boosts after a long period as the number of international flights increased following the reopening of economies globally," said Money Changers' Association of Bangladesh president AKM Ismail Haq.

October 15 was the busiest day for commercial air traffic so far this year with 102,964 flights tracked, according to flightradar.com.

The demand for foreign currencies from individuals on physical counters has improved significantly over the past few weeks from Tk 87-88, he added.

Money-changers are now passing their busiest days after a long slump as a result of the coronavirus pandemic.

The local firms, who mostly trade in foreign currencies with individuals on physical counters in the open market, collect dollars and others from international passengers, mostly from expatriate Bangladeshis.

The major buyers of the same are also international passengers who leave Bangladesh for business or other purposes.

A section of money-changers says the price of dollar has been rising as its value is on the rise in neighbouring India, now around 80 rupees or Tk 98.

They hint that many India-bound passengers are buying dollar much in order to sell it there.

Shakawat Hossian Kabir, owner of National Money Changers' Limited, says: "The price of dollar in India remained much higher than the Bangladesh market."

"I don't know as to whether the greenback is being smuggling out or not," he remarks.

According to currency traders, both demand for and supply of foreign currencies had declined significantly as public movement to and from Bangladesh remained much lower even a month back.

[email protected]

Share if you like