Dhaka, Bangladesh (BBN) - Bangladesh taka (BDT) has depreciated marginally by 0.40 per cent against the US dollar over a month following a rise in the demand for the greenback in the market, treasury officials said.
The depreciation of BDT has started since October 29 last following the increase of demand for greenback in the inter-bank foreign exchange market to settle import payment bills for petroleum products, fertilizer and food grains.
On October 19 last, the US dollar was quoted at BDT 68.52- BDT 68.54 in the inter-bank foreign exchange market against BDT 68.52 on the previous working day.
The US dollar was traded at BDT 68.77- BDT 68.80 in the foreign exchange market Tuesday against BDT 68.75- BDT 68.77 of the previous working day, they confirmed.
"The local currency has depreciated against US dollar in line with the market demand," a senior official of the Bangladesh Bank (BB), the country’s central bank, told BBN in the capital, Dhaka.
"We're monitoring the country's forex market closely to keep the market stable," the BB official said, adding that the central bank continued its intervention in the market by selling and buying US dollar directly and providing overdraft facilities to the banks.
On the other hand, market players said that the local currency should depreciate more against the US currency to encourage exporters as well as help increase the flow of inward remittances.
"The exchange rate of local currency against the US dollar will be re-fixed considering our competitors like India, Pakistan and Vietnam," a treasury official of a private commercial bank said.
He also said the depreciation of BDT will not affect heavily the inflationary pressure on the economy as falling trend in prices of commodities in the global market.
The exchange rate of Indian Rupee against US dollar in early December 2007 was Rs. 39.83 and it gradually moved up to Rs. 43.95 in September 2008, Rs. 47.83 in October 2008 and it was Rs. 48.66 on October 15 last.
On the other hand, the US dollar exchange rate against Pakistani Rupees was Rs. 60.90 in early December 2007 and went up to Rs. 75.71 in early September 2008 and it touched Rs. 77.84 by the end of October.
BBN/SI/SS/AD-26Nov08-8:47 AM (BST)