Dhaka:The exchange rate of the US dollar in Bangladesh's banking channels has exceeded Tk 125, driven by a heightened demand for fuel and petroleum imports. This development comes despite various stabilization measures implemented by Bangladesh Bank.
According to United News of Bangladesh, on Tuesday, several commercial banks purchased US dollars from exchange houses at rates ranging between Tk 125.10 and Tk 125.15. Meanwhile, the rate for settling import letters of credit (LCs) was between Tk 124.90 and Tk 124.97. Over the past three months, the dollar's value has risen by more than Tk 2.30.
An official from Bangladesh Bank's foreign exchange department noted that the central bank aims to keep the exchange rate below Tk 125. However, increased import demand for essentials and fuel oil has driven up the rates. The heightened demand is primarily due to government-level payments for fuel oil imports, especially after the conflict in the Middle East in March led to a steep rise in international fuel prices.
Central bank data indicates a 15 percent increase in Bangladesh's total import expenditure during the July-September quarter of the current fiscal year. Petroleum import costs reached $2.98 billion, a significant rise from $2.33 billion in the corresponding period of the previous fiscal year. Additionally, expenditure on petroleum, oil, and lubricants surged to $3.71 billion, almost double the $1.82 billion recorded a year earlier.
Despite the central bank's sale of $122 million from foreign exchange reserves last week, it failed to reduce the dollar rate in the open market. Financial analysts and bankers expect that ongoing import payment pressures from the Bangladesh Petroleum Corporation (BPC) and Petrobangla will continue to keep dollar demand high throughout the month.