September 30, 2022

Exchange rate floating soon: finance minister

The government will soon adopt a floating exchange rate of the dollar against the taka, Finance Minister AHM Mustafa Kamal said today (September 14, 2022).

“We will introduce the floating market-based exchange rate today or tomorrow,” he told reporters after a virtual cabinet committee meeting on the purchase.

For all the latest news, follow the Daily Star’s Google News channel.

Foreign exchange transactions have so far been settled at rates set by the Bangladesh Bank, he said.

“We will follow the global method to gradually settle the exchange transaction,” he said.

The majority of countries mainly fix the exchange rate of their respective currencies according to the method of supply and demand.

The central bank yesterday took a number of steps to adopt the floating exchange rate for the first time in a decade.

As part of this decision, it has indicated the exchange rate of the taka against the greenback on its website given the rate set by lenders on the interbank platform.

The buying and selling rates for each dollar yesterday were in the range of 102.37 Tk to 106.90 Tk, as opposed to 95 Tk two days earlier.

Kamal, while speaking to reporters after a meeting of the Public Procurement Committee, said today that the foreign exchange reserve would soon reach $48 billion.

“Exports have increased in the country, imports have decreased and remittances have also increased. Recently, the highest number of remittances of $24 billion arrived in the country in a year… remittances have started to average $2 billion a month now. That way it hit $48 billion earlier, it will happen again,” he said.

Last year, the country’s foreign exchange reserves hit a new high of $48.04 billion amid the coronavirus pandemic.