Dhaka, Bangladesh (BBN) – Bangladesh Taka (BDT) depreciated by 04 paise to maximum 78.27 against the US dollar on Monday following higher demand for the US currency from importers.

The US dollar was traded at BDT 78.26- BDT 78.27 in the inter-bank foreign exchange market on the day against BDT 78.23 of the previous working day, according to treasury officials.

They said the US dollar is strengthening against the BDT since October 25 last for making import payments for essential commodities including petroleum products.

They also blame the exchange rate fall on slow export growth, negative growth in inward remittances in October compared to the previous month, payment pressure from oil import by Bangladesh Petroleum Corporation (BPC) and the increasing foreign currency loans extended by offshore banking units.

“The local currency has depreciated against the US dollar on the basis of market demand,” a senior official of the Bangladesh Bank (BB) told BBN in Dhaka, adding that the central bank is monitoring the overall foreign exchange market closely to keep it stable.

The rising trend of US dollar is likely to continue for a few more days if the central bank refrains from intervening in the market, a senior treasury official of a leading commercial bank hinted.

He also said a few number of banks are now trying to buy the US dollar from the central bank to meet their clients demand.

A purchase proposal from a leading foreign commercial bank was rejected by the BB on Monday, another BB official confirmed.

He also said the central bank yet to take any decision for selling the US dollar to the commercial banks to settle import obligations.

“At least four foreign and private commercial banks are now facing difficulty to settle payment for fuel oil imports by the BPC,” the treasury official noted.

BBN/SSR/AD