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A day after the Bangladesh Bank (BB) introduced crawling peg-driven exchange rate flexibility, the price of a US dollar in the kerb market surged by Tk 7.0 to Tk 125 on Thursday.
Currency traders in the open market were selling each dollar between Tk 124 to Tk 125, found The Financial Express after visiting several money exchangers at Motijheel, Shahbagh and Paltan area.
Just a couple of days earlier, the price of the greenback was between Tk 117 to Tk 118, according to traders.
The owner of a money exchange house at Paltan, who wished to remain anonymous, said they were selling each US dollar at Tk 124 on Thursday, while buying them at Tk 120-Tk 121.
The official rate in the spot market usually determines the exchange rate for the open market, he said, adding, "As the exchange rate in banks increased due to the implementation of the crawling peg, the dollar price in the open market rose accordingly."
Kamrul Islam, who trades foreign currencies at a money exchange outlet in Dhaka's commercial hub Motijheel, said the rate of US dollar had risen to Tk 125, but people were currently not interested in buying them unless absolutely necessary.
A report by the United News of Bangladesh (UNB) also suggested that people were observing the open market after the crawling peg implementation.
UNB quoted Munira Ahsan, a private job holder, who said she tried to buy $5,000 from the kerb market on Thursday to pay for her father's medical treatment in Thailand. However, she could only find the currency available at Tk 125 per dollar.
Munira previously attempted to buy dollars from banks. She said the banks requested numerous documents and asked excessive questions before agreeing to sell her $5,000. After submitting five types of documents, one bank finally agreed to sell her only $500.
Faced with this situation and needing the money for her father's urgent surgery abroad, Munira then turned to the kerb market.
A money changer in Paltan, speaking to UNB on condition of anonymity, said the rise in the US dollar rate was not an isolated case.
"The exchange rate of other currencies also increased by Tk 4-5 overnight," he commented, "as demand for the Saudi Riyal has risen with the Hajj season."