The Bangladesh Bank has allowed bankers to provide exporters with the current US dollar exchange rate in an attempt to stop the decline in foreign exchange reserves and bring unrealized export revenues into the nation.
The reprieve occurred over two weeks after the central bank instituted the crawling peg exchange rate system, which permits the currency rate to oscillate within a range, and established the mid-rate at Taka 117 to progressively relinquish control of the exchange rate to the market.
Based on an unofficial direction from the central bank, lenders had previously fixed Taka 110 per US dollar; the new rate was 6.36 per cent higher.
According to bankers, there would probably be a rise in the influx of US dollars after the easing.
In March last year, the central bank asked banks to buy the greenback from exporters based on its value on the due date of proceed realisation rather than the prevailing rate.
As per the rule, exporters are required to bring export proceeds within four months of shipment.
Nonetheless, there is a claim that some exporters have not reported their export earnings since the US dollar’s exchange rate has been artificially maintained below the market rate.
The actual realisation of export proceeds and shipment value diverge as a result.
For instance, according to Export Promotion Bureau (EPB) data, Bangladesh exported commodities valued at US $ 43.55 billion for the July–March fiscal year (FY) 2023–2024.
The data revealed that, in actuality, the period’s export revenues realised amounted to US $ 40.87 billion, indicating a US $ 2.68 billion discrepancy.
There was a US $ 12 billion discrepancy in export numbers for FY23 between the EPB and the central bank.
“We want the proceeds to come to the country. So, we have revoked the previous rule,” said a senior official of Bangladesh Bank.
A top official of a private bank said before the relaxation of the rule, exporters did not get the prevailing rate of the greenback.
“There was a penalty for exporters. Now that rule has been revoked, the flow of unrealised export will increase and help increase reserves,” he said.
“It appears the purchasing cost of dollars of banks will increase. So, importers will find the greenback costlier,” the official added.
The official claims that those who brought their export revenues in early to comply with the requirement are eventually losers as a result of the rule’s relaxation.
Despite several actions, Bangladesh’s foreign exchange reserves have been declining since September 2021.
The International Monetary Fund calculated that as of May 15, the country’s gross international reserves were US $ 18.42 billion, or more than three and a half months’ worth of import bills. The monthly import bill for the country is about US $ 5 billion.
The current reserve amount in Bangladesh barely meets the International Monetary Fund’s minimum benchmark for countries to clear import payments.
Bharat Tex Special Report 2026 
