Dhaka, Bangladesh (BBN)– The exchange rate of Bangladesh Taka (BDT) depreciated further against the US dollar on Monday mainly due to higher demand for the greenback for settling the import bills.
The local currency depreciated by five poisha in the inter-bank foreign exchange (forex) market on the day after a week, according to market operators.
The US dollar was quoted at BDT 84.50 each in the inter-bank forex market on the day against BDT 84.45 of the previous working day, they said.
Senior bankers, however, said the exchange rate of BDT is likely to depreciate further against the US currency in the near future if the import payment obligations increase particularly for mega infrastructure projects.
The country’s overall export earnings and the inflow of remittance will be increased following depreciation of the local currency against the US dollar, they added.
On the other hand, such depreciation will also increase the cost of imports that may push up the inflationary pressure on the economy slightly in the near future, they explained.
The local currency depreciated by 60 poisha against the greenback in the inter-bank forex market from January 03 to May 06.
Earlier on April 29 last, the BDT lost its value by 10 poisha against the US currency on the same ground.
The greenback was quoted at BDT 84.50 each in the market on May 06 against BDT 83.90 on January 02 this calendar year.
The local currency faced such depreciation, although the Bangladesh Bank (BB) continued its foreign currency support to the commercial banks in the recent months to keep the forex market stable.
Under the latest move, the central bank sold US$10 million to a state-owned commercial bank on Monday to help setting import payment obligations.
A total of $2.15 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 is continuously providing such support to the banks for making import payments, particularly for fuel-oils, fertilisers, LNG (liquefied natural gas), and capital machinery for power plants.
The demand for the US currency is gradually increasing, mainly due to higher import payments pressure, particularly of intermediate goods, capital machinery and fuel oils, according to the market operators.