The crisis of US dollar in the inter-bank market has taken the exchange rate of the greenback to all-time high at Taka 83.50 on Tuesday, market sources said.

The rate of US dollar has increased by Tk 1.25 in a span of five days due to huge pressure on the local currency Taka, a senior official of a private bank said.

To overcome the crisis, the Bangladesh Bank (BB) has started to investigate into smuggling of the US dollar through the kerb market, as the rate of the greenback was volatile during last couple of months, BB sources said.

In December 2010, the US dollar was sold for Tk 69 in inter-bank money market while it was Tk 82. 50 during the same month last year, data showed.

NCC Bank, a private commercial bank, sold US dollar for Tk 82.50 yesterday while Citibank NA sold it for Tk 83.50. The central bank is monitoring the matter on information that a group of importers collected US dollar from the kerb market for opening letter of credit (LCs) and thus smuggled the dollar abroad through under invoicing.

There is an allegation against some unscrupulous businessmen for their involvement with smuggling US dollar during last several months.

Last year, the central bank cancelled licenses of 395 money exchangers on allegation of smuggling the greenback, but the effort ended with no result, BB official said.

Executive director of Bangladesh Bank (BB) Jahangir Alam said they had already received allegations against some money changers. “Now, we are inquiring into the matter,” he added.

Alam also pointed out that crisis of US dollar may intensify further as the amount of import raised during last couple of months.

The Daily Sun/Bangladesh/ 4th Jan 2012