The dollar crisis in the kerb market has grown deeper after Bangladesh Bank and law enforcers raided the money exchange houses with allegations of profiteering by charging higher exchange rates.
In the last two weeks, the exchange rate of the US dollar in the kerb (open) market reached Tk117 to 118 per dollar from Tk112. Under the central bank's direction, law enforcers raided different exchange houses in different areas of the capital towards the end of last week, and over the weekend.
During these raids, the exchanges were strictly instructed to sell dollars at the previous rate of Tk 112 to 113.
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But not, on the first working day of this week, it emerged that stung by the raids, the money exchanges have taken the dollar off the market completely. You cannot buy a dollar for even Tk120, as the exchange houses are resolutely stating they have no dollar to sell.
Licenses of several establishments were suspended and sealed for selling dollars at high prices. In such a situation, money exchange institutions have almost stopped selling dollars due to fear of punishment. As a result, there is a shortage of dollars in the open market, said the sector insiders.
Replying to a query about the dollar crisis in the kerb market, Bangladesh Bank Executive Director and Spokesperson Mesbaul Hoque told UNB that the dollar is being traded, but not everyone is selling it. Only those who have dollars are selling, according to the spokesman.
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Zaman (not real name), the owner of a money exchange house in the Motijheel area, told UNB on Sunday that they cannot buy even at Tk115, how can it be possible to sell dollars at Tk 112-113, he questioned.
Many other money exchange houses and individual floating traders of the US dollar were seen passing idle time on Sunday due to the supply crisis of the dollar.
This dismal picture was seen visiting money exchanges in Motijheel, Paltan, and Baitul Mukarram areas of the capital
Our correspondent searched in other areas like Gulshan, Banani, Mohakhali, and Farmgate too, with no luck.
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“Money changers buy from one person and sell to another. At the current rate, the money changers have to buy dollars at Tk110 to sell dollars. How will money changers get dollars if no one sells dollars below Tk112? Trader can't sell if he doesn't get dollars, money changers pointed out,” said Aynal, who has been involved in dollar trading for the last 12 years.
Oram Faruk came to Motijheel to buy dollars as he has to go to Thailand on September 6. He visited several banks to buy dollars for expenses but did not get any.
“Now came to the money changer, no dollars here either. I called an acquaintance in Gulshan to manage $400, which is possible at a cost of Tk120 per dollar," Omar said.
Asked why he would agree to buy at such steep rates, Omar pointed out: "Regardless of the price, how can I go abroad without dollars?"