People of the country who go abroad for various purposes are worried over the recent increase in the exchange rate of the US dollar.
As per the announcement made by the central bank on May 8, the dollar exchange rate has jumped to Tk 117 from its previous level of Tk 110.
A number of people who have planned to go abroad say that the hike in dollar price puts extra burden on them. “With each dollar now costing Tk 117, now we have to spend more money to meet expenses associated with foreign currency exchange,” one of them told Bangladesh Post on Sunday.
According to various travel agencies, airlines have already notified them of fluctuations in the dollar price, indicating that the new exchange rate will be applicable to all purchases of air tickets.
A travel agency owner told this correspondent on Sunday that they have received a letter from the Biman Bangladesh Airlines. “The new exchange rate will be applicable to purchase of each ticket,” the letter reads.
US Bangla Airlines general manager Kamrul Islam told Bangladesh Post that the adjustment for the dollar exchange rate would lead to an increase in airfares, ultimately affecting the passengers.
Furthermore, the dollar exchange rate hike would impact the import sector. Importers, in particular, have expressed dismay as the increased exchange rate would push up import costs. This phenomenon has the potential to trickle down to consumers, impacting the people’s purchasing power and affordability of essential commodities.
Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) president Mahbubul Alam said, “Tk 7 increase in a day would have significant impact, benefiting exporters but causing problems for importers. The subsequent increase in import costs might negatively impact the market that would finally hit consumers hard.”
As import costs soar, businesses may face challenges in maintaining competitive pricing and sustaining profitability. Additionally, consumers may experience inflationary pressures, as increased import costs are often passed on through higher retail prices.
Local traders depend on banks to purchase dollars and open letters of credit (LCs) to facilitate imports of essential commodities, including edible oil, lentils, sugar and onions. When the US dollar gains strength against the local currency, it pushes up the prices of goods in the country’s market.
However, Prime Minister’s Private Industry and Investment Adviser Salman F Rahman says that the rise in the value of the dollar will put no impact on imports.
