The US dollar gained marginally against the Bangladeshi taka on Sunday, as the inter-bank exchange rate increased following Bangladesh Bank’s shift to a market-based currency regime.

According to the central bank, the inter-bank selling rate for the dollar rose to Tk 122.78, up from Tk 122.60 the previous day. On May 14, when the new exchange rate mechanism was introduced, the rate stood at Tk 122.

Most banks are now selling dollars to importers at around Tk 122.70 and purchasing from exporters and exchange houses at rates between Tk 122.30 and Tk 122.50, according to bank websites.

On May 14, the central bank removed the fixed Tk 1 spread between buying and selling rates, effectively allowing banks to freely negotiate rates with clients and in interbank transactions, restoring a pricing system based on supply and demand.

A treasury official from a private bank said authorities have urged market participants to act responsibly under the new system.