Dollar disappears from kerb market amid central bank-led raids on money exchanges

The dollar has disappeared from the kerb market, deepening an already worrying crisis. 

For even Tk120, a single dollar can't be purchased. 

Under central bank directives, law enforcers began raiding different money exchanges in an attempt to tame the prices back to Tk112 from the highs of Tk117 per dollar.

The move, however, backfired as money exchanges stopped selling dollars altogether. 

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 exchangers were instructed to sell dollars at the previous rate of Tk112-113.

Licences of several establishments were suspended and sealed for selling dollars at high prices. 

Money exchange institutions halted dollar sales possibly due to fear of penalties. As a result, there is a shortage of dollars in the open market, said industry insiders.

Asked about the issue, Bangladesh Bank Executive Director and Spokesperson Mesbaul Hoque said the dollar is being traded, but not everyone is selling it. 

Owner of a money exchange house in the Motijheel area, wishing anonymity said today, "We cannot buy dollars at Tk115 even, so how can we possibly sell at Tk112-113?"

Traders can't sell if they do not get dollars, according to money changers, 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 6 September. He visited several banks to buy dollars but had no luck.

"Now I've come 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 said, "Regardless of the price, how can I go abroad without dollars?"