Dhaka, Bangladesh (BBN)– Bangladesh taka (BDT) depreciated marginally by 0.20 per cent against the US dollar in the last seven working days following a rise in demand for the greenback in the market.
“The local currency has depreciated against the US dollar on the basis of market demand,” a senior official of the Bangladesh Bank (BB) said, adding that the central bank was monitoring the overall foreign exchange market closely to keep it stable.
“The central bank may intervene in the market if necessary,” the BB official noted.
The US dollar was traded at BDT 69.17- BDT 69.20 in the inter-bank foreign exchange market Wednesday against BDT 69.04-BDT 69.05 on the first day of this month, treasury officials said.
The BDT has been depreciating since December 1 last following the increase in demand for the greenback in the inter-bank market to settle payments for import of petroleum products, fertilizer and food grains.
“The upward trend of US dollar is likely to continue for few more days if the central bank refrains from intervening in the market,” a senior treasury official of a commercial bank told BBN in Dhaka.
He also said the flow of inward remittances is witnessing a falling trend after the Eid festival, which has led to a short supply of the greenback in the market.
Both the central bank and treasury officials of commercial banks have feared a lower inflow of remittances this month than the previous month.
In November last, Bangladeshis working abroad remitted home more than US$1.0 billion, the highest monthly inflow, largely due to the Eid ul-Azha festival.
The remittances hit $1.054 billion in November, up by $152.84 million from that of the previous month. In October last, the remittances stood at $900.70 million, the BB data showed.
“The flow of remittance normally falls after the Eid-ul-Azha festival,” another BB official said, adding that the central bank was watching the remittance situation closely.
BBN/SS/SI/AD-10December09-11:26 am (BST)
