Finance
Dollar Crisis Dollar crisis in Bangladesh decreases
Dhaka, March 31: Dollar crisis has been going on in the country for a long time. Due to this many companies could not open LC. The dollar rose by leaps and bounds in an unbridled market. Meanwhile, many bank-money changers got involved in manipulation. As a result, the market became more reckless. Banks and money changers involved in manipulation are also fined. Still the market is not under control. Instead, the price of the dollar rose to Tk 127 in the open market. After that, the central bank was shaken. The regulatory body takes various initiatives. Bangladesh Bank released dollars from reserves to keep the market normal. In this, the reserve also falls. However, the banks are in a cautious position with dollars to solve the crisis. All in all, the US dollar crisis in the country has been reduced somewhat due to various public and private initiatives.
Those concerned say that the bank once became desperate to buy expatriate income or remittances as LC payments could not be made. As a result, the price per dollar rose to Tk 120. But now expatriate income is available at the price of Tk 114 to Tk 115. The dollar's official price has fallen to Tk 110 as expatriate income devalues the dollar. At the same time, the liquidity crisis in the banks has also reduced a little.
According to the sector concerned, several initiatives have come in handy in reducing the dollar crisis. One of these is the decrease in imports due to the strict imposition of Bangladesh Bank. Similarly, remittances and export earnings have increased due to the move away from a tight stance on the dollar. Besides, the crisis has eased somewhat due to the facility of swapping money against the dollar.
Since the beginning of the Russia-Ukraine war, the dollar crisis has started in the country. Due to this war between the two countries, the price of food products including fuel increases in the world market. This suddenly increases the cost of imports. In the midst of the Russia-Ukraine situation, Bangladesh had to pay the import debt of 837 crore dollars in June 2022. After that, the central bank imposed strictness on the opening of letters of credit (LC). Up to 100 percent cash deposit obligation is given against LC opening.
