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Money changers in Dhaka have ceased official sales of US dollars after the Bangladesh Bank set a cap of Tk 119 per dollar, a rate lower than their procurement costs.
The development comes a day after the central bank set the dollar sale rate on Wednesday.
"The Bangladesh Bank's directive left us with no choice," Prothom Alo quoted MS Zaman, president of the Money Changers Association of Bangladesh, as saying.
In addition to stopping official sales, money changers in the capital’s Motijheel and Gulshan are facing a severe shortage of dollar supply.
"Those who come from abroad sell dollars to us. Since their arrival has come down, there is no dollar supply," Zaman explained.
"As a result, dollars are not available at money changers. Besides, banks are not providing us with any dollars. If they sold dollars to us at Tk 118, we could sell at Tk 119," he added.
Two weeks ago, the open market exchange rate for the dollar was between Tk 118 and Tk 119. This price had remained steady for several months.
However, following a movement for quota reform last Monday, the rate surged to Tk 122 and is now at Tk 125.
Industry insiders believe that a reduction in remittance inflows through banking channels is impacting the open market.