Eid outbound travel boom drives up dollar rates

The demand for cash US dollars has risen sharply ahead of Eid-ul-Fitr, pushing up the greenback's exchange rate in both formal banking channels and the informal kerb market, according to market players.

Typically, demand for the greenback increases ahead of major festivals like Eid, as a significant number of people travel abroad to celebrate holidays with their family members.

Bank officials and currency traders said that the American dollar now trades at approximately Tk 124 in commercial banks, while in the kerb market, the rate has topped Tk 126 per dollar in recent days.

This year, the ongoing crisis stemming from US-Israeli war on Iran has already impacted the Taka-dollar exchange rate. The pressure has been further intensified by a surge in outbound Bangladeshi tourists, particularly to Southeast Asian destinations, during the Eid holidays.

The rising demand for cash dollars has pushed the exchange rate to around Tk 124 per dollar in the banking channel, said a treasury head of a private commercial bank, who declined to be named.

Due to the ongoing war in the Middle East, Bangladeshi tourists are now opting for countries such as Thailand, Malaysia, Indonesia and Singapore, he said.

Although outbound travel has increased significantly, Bangladesh Bank does not have precise data on the volume of dollars taken out of the country during Eid holidays.

However, the situation has turned into a boon for some, as hoarders and money exchangers are benefiting from the surge in cash dollar prices in the kerb market.

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