The exchange rate of the local currency depreciated further against the US dollar on Wednesday after 22 days despite the central bank's foreign currency support to the commercial banks.
The exchange rate of Bangladesh Taka (BDT) depreciated by two paisa on the day against the greenback, mainly due to higher demand for the US currency in the market, the operators said.
The US dollar was quoted at Tk 82.92 each in the inter-bank foreign exchange market on Wednesday against Tk 82.90 of the previous working day, they added.
On January 22, the exchange rate of the local currency depreciated by two paisa against the US dollar on the same ground.
The US dollar was quoted at Tk 82.90 each in the inter-bank forex market on January 22 against Tk 82.88 of the previous working day.
The latest revised exchange rate came in the inter-bank forex market just one day after depreciation of the BDT by five paisa against the US dollar at customer level.
The exchange rate of the US dollar rose to maximum Tk 83.40 for sale of Bill for Collection (BC) on Tuesday from maximum Tk 83.35 of the previous working day, according to the market operators.
The banks also quoted the US dollar at maximum Tk 82.40 on Tuesday against Tk 82.35 of the previous working day to the remitters for telegraphic transfer (TT) clean of their funds.
"We've re-fixed our BC selling and TT clean rates in line with the market requirement," a senior treasury official of a leading private commercial bank (PCB) told the FE.
The depreciating mode of BDT against the greenback may continue in the near future also, mainly due to higher import payment obligations, he hinted.
Meanwhile, the Bangladesh Bank (BB) is providing its foreign currency support to the banks continuously for settling import payment obligations.
As part of the move, BB sold US$8.0 million directly to six banks on Wednesday to meet the growing demand for the greenback in the market.
On Monday, BB similarly sold $20 million to different banks on the same ground.
The central bank has resumed giving the support in the recent months through selling the US currency to the banks directly to keep the market stable.
A total of $1.41 billion was sold to the commercial banks since July 01 of this fiscal year, 2017-18, as part of its ongoing support, according to BB's latest data.
"We're selling the US currency to the banks continuously to help settle their import payment bills, particularly of fuel oil, food grains and power related equipments," a BB senior official said while explaining the main objective of their ongoing foreign currency support.
He also said the central bank may continue providing such foreign currency support to the banks in line with the market requirement.
The country's forex reserve rose to $32.89 billion on Wednesday from $32.81 billion of the previous level despite selling the US dollar to the banks.
"Higher inflow of remittance along with overseas development assistance has contributed to boost the forex reserve," the central banker noted.
Bangladesh received $375.78 million as remittance between February 01 and February 09 from its nationals working abroad, according to the BB statistics.
The amount of remittance from the Bangladeshi expatriates was $1.38 billion in January 2018, up by $215.97 million than that of the previous month. In December 2017, the amount was $1.16 billion.
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