Taka depreciated by 0.58pc against $ in two months

FE Team | Published: December 16, 2008 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
Bangladesh taka (BDT) has been depreciated marginally by 0.58 per cent against the US dollar in nearly two months following rise in demand for the greenback in the market.
The depreciation of BDT started since October 19 last following increase in demand for the US currency in the inter-bank foreign exchange market to settle import payment bills for petroleum products, fertiliser and food grains.
On October 19 last, the US dollar was quoted at Tk 68.52- Tk 68.54 in the inter-bank foreign exchange market against Tk 68.52 on the previous working day.
US dollar was traded at Tk 68.88- Tk 68.92 in the foreign exchange market Monday against Tk 68.88 of the previous working day, officials confirmed.
"The local currency has been depreciated against the US dollar in line with the market demand," a senior official of the Bangladesh Bank (BB) told the FE.
He also said the central bank is monitoring the foreign exchange market situation closely to keep it stable.
Meanwhile, the exchange rate of US dollar against the local currency has recorded a falling trend recently as the flow of greenback increased in the unofficial market, generally known as kerb market.
US dollar was traded at Tk 68.40-Tk 68.70 in the kerb market Monday against Tk 68.30-Tk 68.60 of the previous working day, market insiders said.
The flow of US currency has increased in the kerb market following Eid festival, they observed.
The lower exchange rate of greenback in the kerb market compared to the inter-bank foreign exchange rate may help increase the supply of US dollar through banking channel in the near future, the BB officials said.
"The BDT should be devalued more against the greenback to encourage exporters as well as help increase the flow of inward remittances," a senior treasury official of a private commercial bank told the FE.
The depreciation of the local currency will not heavily influence the inflationary pressure on the economy because of fall in prices of commodities in the global market, the official explained.