Dhaka, Bangladesh (BBN)- The exchange rate of Bangladesh Taka (BDT) depreciated slightly against the US dollar (USD) on Tuesday, despite the central bank’s support with foreign currency to the commercial banks.
The local currency depreciated by three paisa in the inter-bank foreign exchange market on the day mainly due to higher demand for the greenback, market operators said.
The US dollar was quoted at BDT 83.78 each in the inter-bank foreign exchange market on the day against BDT 83.75 of the previous working day.
Meanwhile, Bangladesh Bank (BB) was providing foreign currency support to the banks continuously for settling the import payment obligations, particularly of fuel oil and capital machinery, a senior official at the Bangladesh Bank (BB) told the BBN in Dhaka.
The central bank of Bangladesh sold US$25 million more directly to three banks on the day aiming to keep the market stable.
The official said that the central bank might continue providing such forex support to the banks in line with the market requirement.
Earlier on Monday, the BB resumed its foreign exchange support through selling the US dollar to the banks after nearly a month interval.
As part of the move, the central bank sold $15 million at market rate to two state-owned commercial banks on Monday on the same ground.
Besides, the exchange of BDT depreciated by five paisa against the US currency at customer level on Monday.
The exchange rate of greenback for BC (bills for collection) selling rose to BDT 83.80 on Monday from BDT 83.75 of the previous working day, they added.
A total of $150 million was sold to the commercial banks since July 01 of this fiscal year, 2018-19, as part of its ongoing support, according to BB’s latest data.
The demand for the US dollar is gradually increasing, mainly due to higher import payments pressure, particularly of capital machinery, petroleum products and consumer items.