BBN file photo
Dhaka, Bangladesh (BBN) – The exchange rate of the Bangladesh Taka (BDT) depreciated further against the US dollar on Sunday due to higher demand for the greenback in the market.
The local currency depreciated by five poisha in the country’s inter-bank foreign exchange (forex) market on the day after more than a week, according to market operators.
The US dollar was quoted at BDT 84.20 each in the inter-bank forex market on the day against BDT 83.15 of the previous working day, they said.
Earlier on February 25 last, the local currency depreciated by three poisha in the inter-bank forex market on the same ground.
The US dollar was quoted at BDT 84.15 each in the inter-bank forex market on that day against BDT 83.12 of the previous working day.
The local currency faced the depreciation, although the central bank sold US$ 44 million to the banks in the last week for keeping the forex market stable.
In the previous week, the central bank sold US$21 million to the commercial banks particularly public ones on the same ground.
A total of $1.71 billion has been sold since July 01 of the current fiscal year (FY), 2018-19, to the commercial banks as part of BB’s ongoing support, according to latest official figures.
The central bank may continue providing such foreign currency support to the banks in line with the market requirement.
On the other hand, the banks were quoted the US dollar at maximum BDT 84.25 each for sale of Bill for Collection (BC) today (Sunday) from BDT 84.20 of the previous level.
On February 14, the exchange rate of the Bangladesh Taka depreciated further against the US dollar following higher demand for the greenback in the market to settle the import bills.
The local currency depreciated by seven poisha in the country’s inter-bank forex market just after two days back, market operators said.
The US dollar was quoted at BDT 84.12 each in the inter-bank forex market on the day against BDT 84.05 of the previous working day, they added.
The local currency depreciated for the second times in a week that remained from February 10 to 14 despite of selling US$ 37 million by the central bank to four commercial banks aiming to keep the forex market stable.
The central bank had sold the amount to four state-owned commercial banks (SoCBs) on February 14 for making import payments, particularly for fuel-oils, fertilizer and capital machinery for power plants, a senior official of the Bangladesh Bank had told the BBN in Dhaka.
He also said the central bank might continue providing such foreign currency support to the banks in line with the market requirement.
Earlier on February 11, the local currency depreciated by 10 poisha against the greenback in the inter-bank forex market on the same ground.
The greenback was quoted at BDT 84.05 each in the market on that day against BDT 83.95 of the previous working day.
Talking to the BBN, a senior treasury official of a leading private commercial bank (PCB) said exporters and remitters will be encouraged following such depreciation of the local currency against the US dollar.
He also said such depreciation will increase cost of import that might push up inflationary pressure on the economy in the near future.
On the same day, the exchange rate of BDT depreciated by eight poisha against the US currency at customer level for settling import bills.
The exchange rate of the US dollar rose to maximum BDT 84.20 each for sale of Bill for Collection (BC) on that day from maximum BDT 84.12 of the previous working day, according to the operators.
The local currency should be depredated more against the US dollar considering the ongoing demand and supply situation in the market, according to the treasury official.
BBN/SSR/AD