Dhaka, Bangladesh (BBN) – The exchange rate of the Bangladesh Taka (BDT) has depreciated further against the US dollar mainly due to higher demand for the greenback in the market.
The local currency depreciated by three poisha in the country’s inter-bank foreign exchange (forex) market on Monday after more than a week, according to market operators.
The US dollar was quoted at BDT 84.15 each in the inter-bank forex market on the day against BDT 83.12 of the previous working day, they said.
The local currency faced the depreciation, although the central bank sold US$ 20 million to a state-owned commercial bank (SoCB) on the day for keeping the forex market stable.
“The exchange rate has been re-fixed in line with the market requirement,” a senior official of the Bangladesh Bank (BB) told the BBN in Dhaka.
He also said the central bank has sold the US dollar to the SoCB for making import payments, particularly for LNG (liquefied natural gas).
The official also said the central bank is continuously providing such foreign currency support to the banks for making import payment obligations against the essential items.
A total of $1.62 billion has been sold since July 01 of the current fiscal year (FY), 2018-19, to the commercial banks as part of BB’s ongoing support, according to latest data.
The BB may continue providing such foreign currency support to the banks in line with the market requirement, the central banker hinted.
On February 14, the local currency depreciated by five poisha against the greenback in the inter-bank forex market on the same ground.
The US dollar was quoted at BDT 84.12 each in the inter-bank forex market on the day against BDT 84.05 of the previous working day.
Senior bankers, however, said the country’s overall export earnings and inward remittance flow will boost up following such depreciation of the local currency against the US dollar.
Such depreciation will also increase cost of imports, they added.
The demand for the US dollar is gradually increasing, mainly due to higher import payment pressure, particularly of capital machinery for power plants, intermediate goods, petroleum products and LNG.