Written by The Banking Post
A sharp rise in outbound travel ahead of Eid-ul-Fitr has driven up demand for US dollars, pushing exchange rates higher in both formal banking channels and the informal market.
Bankers and currency traders said the greenback is now trading at around Tk 124 in commercial banks, while rates in the kerb market have climbed past Tk 126 per dollar in recent days.
Market players said demand for cash dollars typically increases before major festivals as many Bangladeshis travel abroad to spend holidays with family. This year, the pressure has intensified due to a surge in outbound tourism.
A treasury head of a private bank said the growing demand for travel-related expenses has pushed the exchange rate upward in recent days.
The ongoing geopolitical tensions in the Middle East have also reshaped travel patterns, with many Bangladeshi tourists opting for destinations such as Thailand, Malaysia, Indonesia and Singapore instead of traditional routes.
The central bank, Bangladesh Bank, does not have precise data on the volume of foreign currency taken abroad during the Eid holidays, but officials acknowledge rising demand in the market.
The spike in cash dollar demand has also created opportunities for money changers and hoarders, who are benefiting from higher rates in the kerb market.
The combined impact of festive travel and external uncertainties has added fresh pressure on the foreign-exchange market, already facing volatility in recent weeks.
