BDT's downward adjustment fuels commodity prices

The further appreciation of dollar against BDT (Bangladesh taka) has fuelled the prices of many essential commodities overnight in Dhaka, according to market insiders.
The prices of imported garlic, ginger and green chilli have increased further.
On the other hand, onion and egg already witnessed a hike days ago.
In a single day, the country witnessed an unprecedented surge in the dollar price by Tk 7.0 on Wednesday as the government rate stood at Tk 117.
Cashing in on the appreciation of dollar, traders raised the prices of some products by Tk 10-20 a kg in a day.
Garlic sold at Tk 220-260 a kg, ginger at Tk 240-300 and green chilli at Tk 150-180 on Thursday.
Eggs retailed at Tk 140-150 a dozen and local onions at Tk 70-80 a kg. Importers, however, said the prices of commodities like wheat, edible oil, sugar and others would be pricier further with new adjustments.
The escalating instability in the market portends a ripple effect, leading to a surge in the prices of imported goods.
Under the current "crawling peg" method, dollar's exchange rate determination has precipitated a significant depreciation of BDT, magnifying the dollar's significance.
This abrupt spike in the dollar price carries adverse implications, especially for imports, likely compelling importers to hike product prices, thereby burdening commoners and escalating inflation, as underscored by Helal Uddin, president of the Bangladesh Shop Owners Association.
Taslim Shahriar, senior assistant general manager at Meghna Group of Industries, aptly describes the predicament faced by importers, labelling the escalating dollar price as a significant setback.
Adjusting prices accordingly could further inflate costs.
Uncertainty looms large, as the prevailing dollar rate has already diverted significantly from the past, prompting concerns regarding future scenarios.

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