The local currency is continuously maintaining a depreciating mode against the US dollar (US$), although the central bank is directly selling the greenback to the banks to keep the market stable.
The Bangladesh Taka (BDT) depreciated by 10 poisha in the country's inter-bank foreign exchange (forex) market last week that ended on Thursday, according to the market operators.
The US dollar was quoted at Tk 84.25 each in the forex market on Thursday against Tk 83.15 a week ago, they added.
The local currency faced such depreciation, although the Bangladesh Bank (BB) expedited its foreign currency support to the commercial banks last week to keep the forex market stable.
The BB's selling of US$ to the banks, particularly the public sector ones, rose to $88 million last week from $44 million a week before.
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.
A total of around $1.80 billion has been sold since July 01 of the current fiscal year (FY), 2018-19, to the commercial banks as part of the BB's ongoing support, according to latest official figures.
"Actually, the exchange rate has been fixed in line with the market requirement," a BB senior official told the FE while explaining the latest market situation on Sunday.
The demand for the greenback may ease slightly in the coming weeks, the central banker opined.
The BDT depreciated by 35 poisha against the greenback in the inter-bank forex market from January 03 to March 14, mainly due to higher demand for the greenback, according to the market operators.
The US dollar was quoted at Tk 84.25 each in the forex market on the day against Tk 83.90 on January 02.
Talking to the FE, a senior treasury official at a leading private commercial bank said the existing depreciating mode of the BDT against the US$ may continue in the near future.
He also said such depreciation helps boost export earnings and flow of inward remittance.
"But import will be costlier in the near future following such depreciation of the BDT against the greenback," the senior banker explained.
He added that inflationary pressure may increase on the economy in the coming months, if such depreciating mode of the local currency against the US dollar continues.
However, the exchange rate of the BDT depreciated by 10 poisha against the US currency at customer level for settling import bills last week.
The exchange rate of the US dollar rose to maximum Tk 84.30 each for sale of Bill for Collection (BC) on the day, from maximum Tk 84.20 of the previous week, the market operators added.
[email protected]
