Dollar gains 3.85pc against taka in 12 months
Local currency depreciated by almost 3.85 percent or Tk 3.1 to Tk83.70 as on Tuesday from Tk 80.60 a year ago.
Taka was devalued by 60 paisa during current month when the demand for dollar rose mainly for making import payments, bankers said.
A central bank official said US dollar has recently appreciated against taka on higher demand for greenback in the foreign exchange market.
He said the Bangladesh Bank sold US dollar directly to the commercial banks at market rate to meet payments for import of essential products, including capital machinery, power plant equipment, fuel oils and food grains.
Bangladesh Bank sold almost $2.23 billion directly to commercial banks to meet higher import payments since July 1, 2017, he said.
He expects the central bank to continue giving such support to the banks to stabilise the market.
Although taka has remained stable at Tk 83.70 against US dollar since May 16, 2018, but the market has a huge demand for greenback ahead of Eid ul-Fitr.
Md. Mehedi Hasan, vice president & head of treasury of Jamuna Bank, told Bangladesh Post that the foreign exchange rate of taka is depreciating mainly to make increased import payments compared to export earnings.
He said the exchange rate of the greenback should increase to encourage export earnings in the country as well as reduce unnecessary imports. Hence, the local currency depreciation is not always a negative matter for a country.
The country’s remittance flow and export earnings have recently increased significantly, which is good news for us, said Mehedi, adding that it will help reduce trade gap and boost foreign exchange reserve.