BDT depreciates against US dollar

FE Report | Tuesday, 23 January 2018

The exchange rate of Bangladesh Taka (BDT) deprecated 15 paisa against the US dollar at the customer level on Monday.
The depreciation of the local currency took place in a single day both in cases of clearing import payment obligations and receiving inwards foreign currencies - be it export proceeds or wage earners remittances.
The exchange rate of the greenback rose to maximum Tk 83.35 for selling Bill for Collection (BC) from maximum Tk 83.20 of the previous working day, according to the market operators.
On the other hand, the banks quoted US dollar at maximum Tk 82. 35 on the day against Tk 82.20 of the previous working day to the remitters as well as the exporters for TT (telegraphic transfer) clean.
"We've re-fixed the rates in accordance with a BAFEDA recommendation," a senior treasury officer of a leading private commercial bank (PCB) told the FE.
The technical committee of the Bangladesh Foreign Exchange Dealers Association (BAFEDA) suggested the rate at its meeting Sunday last, considering the overall market situation.
The exchange rates have been adjusted following the upward movement of inter-bank foreign exchange rate, a treasury official and also a member of BAFEDA explained.
However, the exchange rate of BDT also depreciated slightly against the US dollar in the inter-bank market on the day.
The US dollar was quoted at Tk 82.90 on Monday against Tk 82.88 of the previous day, according to the market operators.
Meanwhile, Bangladesh Bank has continued its foreign currency support to the banks for settling the import payment obligations, particularly of food grains, fuel oil and capital machinery.
As part of the move, the central bank on Monday sold US$4.0 million directly to three commercial banks to meet the growing demand for the greenback in the market.
"The central bank sold the US currency to the banks at market rate," a senior official at the BB said.
He said the central bank might continue such foreign currency support to the banks in line with the market requirement.
The BB has resumed providing the support in the recent months through selling of the US currency to the banks directly to keep the market stable.
A total of $1.26 billion has been sold since July 01 of this fiscal year, 2017-18, according to BB's latest data.
The demand for the US dollar is gradually increasing, mainly due to higher import payments pressure, particularly of capital machinery, petroleum products and consumer items like food grains.

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