Bangladesh Caps Cash Dollar at Tk126.50 to Calm Kerb Market

Bangladesh's money changers have set new cash dollar rates for the kerb market, capping the selling price at Tk126.50 per US dollar in a move to stabilise and regulate cash currency prices after rates climbed to as high as Tk128.

The Money Changers Association of Bangladesh (MCAB) announced on 24 August that licensed money changers may now sell US dollars at a maximum of Tk126.50 and buy at Tk125.50. MCAB President MS Zaman made the announcement at a press conference in Dhaka, saying the new rates were being communicated to money changers across the country through the association's website.

Why Cash Dollar Rates Had Climbed

Several money changer owners said the cash dollar rate had recently risen to as high as Tk128 in the kerb market. They attributed the climb to a decline in remittance inflows carried into Bangladesh by expatriates in cash, combined with rising demand for cash dollars after India reopened medical and travel visas for Bangladeshis.

The kerb market, where physical cash currencies are traded, operates separately from the banking channel. On the same day, banks bought remittances from expatriate Bangladeshis at Tk122.30 per dollar, while settling letters of credit at rates of up to Tk122.95 per dollar, according to treasury officials at several public and private banks.

Money Changers Reject Manipulation Claims

On the question of dollar market volatility, Zaman rejected allegations that money changers manipulate rates, saying the sector lacks the scale and capital to influence the market. He instead blamed banks for creating instability and profiting from it in the post-Covid period, noting that money changers only trade cash currencies and cannot directly bring in remittances.

The association also shared a list of illegal and unlicensed money changers with Bangladesh Bank, law enforcement agencies and journalists, while stating that licensed operators were following the central bank's instructions.

Calls for Clearer Rules

Zaman called for clearer rules, greater scope for legal foreign currency trading and simpler policies to curb the illegal market. The new kerb market rates are intended to give licensed operators a defined band within which to trade cash dollars, narrowing the gap that had opened between the kerb market and the official banking channel.

Risk Awareness for Currency Buyers

For anyone exchanging cash dollars in Bangladesh, the gap between kerb market and bank rates is a reminder that cash currency prices can move quickly and vary by channel. Buyers and sellers should verify that they are dealing with licensed money changers, confirm the prevailing rate before a transaction, and be cautious of unlicensed operators that may offer unusually favourable terms. Regulatory guidance from Bangladesh Bank and industry associations such as MCAB is the reference point for legitimate cash dollar trading.