The Money Changers Association of Bangladesh (MCAB) has set a new exchange rate for the US dollar in the open market, fixing the buying rate at Tk 125.50 and the selling rate at Tk 126.50.

MCAB President M.S. Zaman announced the new rates at a press conference at the association’s central office on Monday (August 24). He said the rates were being communicated to all money exchange companies through the association’s website.

Addressing concerns over volatility in the foreign exchange market, Zaman said money changers should not be held responsible for alleged manipulation of the dollar market.

He said the money-changing sector has limited capacity and mainly deals in physical foreign currency. Money changers do not conduct electronic or virtual currency transactions and cannot directly bring in remittances, he added.

According to Zaman, cash foreign currency brought into Bangladesh by returning expatriates and travellers is the main source of business for money changers. By purchasing these currencies through legal channels, money changers also indirectly contribute to strengthening the country’s foreign exchange reserves, he said.

Zaman argued that money changers do not have sufficient capital or capacity to influence the dollar exchange rate. He said Bangladesh Bank remains responsible for monetary policy and plays the central role in the country’s foreign exchange market.

He also called for clear and specific guidelines for money changers, greater opportunities for legal foreign currency transactions and simplified policies to curb the illegal market.

The MCAB president said the association had already provided a list of illegal and unlicensed money changers to Bangladesh Bank, law enforcement agencies and journalists.

He added that licensed money changers are currently strictly following Bangladesh Bank’s written instructions to maintain stability in the foreign exchange market.