Dollars that change hands in Dhaka’s interbank market have a remarkably concentrated origin. Ready-made garments account for the vast majority of Bangladesh’s merchandise export earnings, and the proceeds from shipments of T-shirts, trousers, knitwear, and jackets to buyers in Europe and North America form the largest steady stream of foreign currency entering the banking system. Remittances from overseas workers also provide a major source of foreign currency, but garment receipts arrive through formal letters of credit and contracts, which can make their timing more predictable. Mechanics matter here. When a…
Read MoreGarment Export Receipts Remain the Backbone of Dollar Supply in Taka FX Trading
