Businessmen and economists do not see the increase in the dollar price by 7 rupees as a positive thing. They say that just as there is no upside to holding back the dollar market, there is no justification for raising prices too much at once. They are of the opinion that there would be no instability in the market if the prices were gradually increased. Although Bangladesh Bank officials say that this will reduce the gap with the open market.
Bangladesh Bank on Wednesday (May 8) introduced the new exchange rate system or Crawling Peg Mid Rate (CPMR). In this, the price of the dollar has increased by 7 rupees. Now the official price is 110 to 117 Tk. In this, the value of the rupee decreased by 6.3 percent. Economists do not see any positive side of increasing prices at once.
In November-December, the exchange rate of the US currency was reduced by Rs. It was reduced by 50 paisa per dollar on November 23 and 25 paisa per dollar on November 29. And in December it was reduced by another 25 paise. From December 17 of the year, the exchange rate of taka against the dollar was the highest at 110 taka in Bankkha. Although traders have been complaining that they had to spend 115 to 116 rupees to buy dollars from the bank at the import level.
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On January 1, 2020, the rate of the US currency was 84 taka 90 paisa. A year later, on January 1, 2021, the price decreased by 10 paisa to 84 taka 80 paisa. This was followed by a massive devaluation of the rupee against the currency. On January 1, 2023, the rate of the currency rose to Tk 105. And on January 1 of this year, the price of the currency rose to Tk 110. Last Wednesday (May 8) the price was increased by 7 taka.
The dollar was rising. It was not right to keep it for so long. Because the importer never got the dollar at the fixed price. Then the market was upward. Now the rate will increase as a result of increasing 7 rupees.-Dr. Zahid Hossain
In this regard, the former chief economist of the World Bank Dhaka office. Zahid Hossain told Jago News, ‘The price of the dollar was increasing. It was not right to keep it for so long. Because the importer never got the dollar at the fixed price. Then the market was upward. Now increasing the rate by Rs 7 at a time will further increase the rate. Because it has to be said that there is an opportunity to increase or decrease another rupee.’
Dr. Zahid Hossain said, ‘Bangladesh Bank rate will be stricter in effect. The market will also be unstable. Because many will want to hold the dollar in the hope of getting a higher price. My fear was about the market system (instability). There is no telling where the dollar rate will settle. Let’s see next week.’
I have fixed the intermediate rate by discussing the actual exchange rate (dollars). Now the dollar rate is stable in the open market. As a result, the gap between the open market and the bank will not be more than one taka. – Deputy Governor of Bangladesh Bank. Md. Habibur Rahman
The central bank says the dollar’s intermediate rate is fixed. Here the gap with the open market will decrease. However, the reality of Bangladesh Bank is not reflected in the open market. The price of the dollar increased by 7 taka in the bank, but it increased up to 9 taka in the money exchange. On Wednesday (May 8), the buying rate was 114 taka 50 paisa per dollar, selling at 116 taka. On Thursday (May 9), money exchanges were selling at 125 rupees per dollar. Along with the dollar, other currencies have also been affected in the open market.
Deputy Governor of Bangladesh Bank. Md. Habibur Rahman told Jago News, ‘I decided the intermediate rate after discussing the actual exchange rate (dollar). Now the dollar rate is stable in the open market. As a result, the open market gap with the bank will not be more than one rupee.
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Advisor to the former caretaker government. AB Mirza Azizul Islam said, ‘Dollar rate of Tk 117 is better if implemented through crawling peg. However, it was not right to increase the price of 7 rupees in one step. could be balanced. If it was increased gradually, it would not affect the market. There is also a risk of increasing inflation as a result of increasing it by one jump.’
Traders are looking at a sudden increase in the price of the dollar as a negative. It will increase the cost of transportation, the price of goods will increase. Common people will be under pressure.
In this regard, FBCCI president Mahbubul Alam said, ‘The increase in dollar price by 7 rupees in a day will create challenges in business. This will benefit the exporters, but the importers will face problems. Naturally, if the cost of imports increases, it will create a negative side in the market. Consumer suffering will increase. Therefore, if all decisions are not made in the light of reality, problems will arise and inflation will be fueled.
EAR/ASA/MS
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