Hundi is illegal in Bangladesh and works outside the conventional banking system to transfer money. Though informal, the hundi business is well-organised. It is used as bills of exchange in trade transactions, credit instruments for borrowing money, and remittance instruments for transferring money from one place to another.
USD investments plunges: Bangladesh Bank's foreign exchange reserves invested in US dollars declined 34 per cent year-on-year to $23.63 billion in February as the country is heavily dependent on the American greenback to settle payments for global trade.
The dollar was on the front foot on Monday, supported by a strong run of economic data out of the United States that traders bet will keep the Federal Reserve on its monetary policy tightening path for longer than initially expected.
Crop protection chemical sellers in Bangladesh are facing difficulty in opening letters of credit amid banks' lack of interest owing to the crunch of the US dollar.
The power plant in Bagerhat’s Rampal is set to resume production after a monthlong halt caused by a coal shortage amid a dollar crisis that hampered fuel imports.