The US Dollar Crisis in Bangladesh

Soaring Dollar Prices in the Open Market

The US dollar crisis in Bangladesh has worsened as the open market rate surged to Tk128 per dollar today, a significant increase from earlier in the week. The Bangladesh Bank’s (BB) strict directives and warnings of severe penalties for non-compliance have failed to deter banks and money changers from bypassing the fixed exchange rates, resulting in a surge of illegal currency trading.

Illegal Trading Practices and Market Discrepancies

On Wednesday, the dollar was trading well above the central bank’s set rates, reaching Tk124 in the open market, compared to the BB’s buying and selling rates of Tk113.75 and Tk115.25, respectively. The gap between official and actual market rates has widened, with reports of illegal transactions occurring in busy commercial areas like Motijheel, Dilkusha, Paltan, and Fakirapool.

Challenges in Curbing Illegal Trading

BB spokesperson Mezbaul Haque confirmed that warnings had been issued, and severe punishment had been threatened for financial institutions that disregarded the official rates. However, these measures have not deterred black market activities, as confirmed by Heller Sikder from the Money Changers Association of Bangladesh. Customers have been left with no choice but to turn to unauthorized dealers who demand exorbitant rates due to the scarcity of dollars at legal exchange points.

Aviation Expansion Amidst Financial Turmoil

This financial turmoil coincides with news of Jin Air, an affiliate of the Korean Air group, expressing interest in establishing regular direct flights between Bangladesh and South Korea. Following the successful operation of 121 direct chartered flights over three years between Dhaka and Incheon, the airline’s commitment to maintaining fair pricing for Bangladeshi expatriate workers, despite higher operational costs, highlights its dedication to serving the Bangladesh-South Korea route.

Impact on Bangladesh’s Financial Stability

The escalating dollar price in Bangladesh’s open market poses a significant challenge to the country’s financial stability. Authorities are under pressure to curb illegal trading practices and align market operations with official guidelines to prevent further economic strain.

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