Taka depreciates marginally
Tuesday, 2 December 2008
FE Report
Bangladesh taka (BDT) has been depreciated marginally by 0.48 per cent against the US dollar over a month following a rise in the demand for the greenback in the market.
The depreciation of BDT has started since October 19 last following the increase in demand for greenback 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 68.80- Tk 68.85 in the foreign exchange market Monday against Tk 68.80 of the previous working day, officials confirmed.
"The central bank is monitoring the foreign exchange market situation closely to keep it stable," a senior official of the Bangladesh Bank (BB) told the FE, adding the local currency has been depreciated against US dollar in line with the market demand.
Meanwhile, the exchange rate of US dollar against BDT 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 67.70-Tk 68.00 in the kerb market Monday against Tk 68.50-Tk 68.80 of the previous working day, market insiders said.
The flow of US currency has increased in the kerb market ahead of the Eid festival and general election, they added.
"The lower exchange rate of US dollar in the kerb market compared to the inter-bank foreign exchange rate may help increase the supply of the greenback through banking channel in the near future," the BB official noted.
On the other hand, market players said the local currency should be depreciated more against the US currency to encourage exporters as well as help increase the flow of inward remittances.
"The exchange rate of local currency against US dollar will be re-fixed for increasing the flow of remittances," a senior official of a private commercial bank told the FE.
He also said the depreciation of BDT will not heavily increase the inflationary pressure on the economy because of fall in prices of commodities in the international market.
Bangladesh taka (BDT) has been depreciated marginally by 0.48 per cent against the US dollar over a month following a rise in the demand for the greenback in the market.
The depreciation of BDT has started since October 19 last following the increase in demand for greenback 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 68.80- Tk 68.85 in the foreign exchange market Monday against Tk 68.80 of the previous working day, officials confirmed.
"The central bank is monitoring the foreign exchange market situation closely to keep it stable," a senior official of the Bangladesh Bank (BB) told the FE, adding the local currency has been depreciated against US dollar in line with the market demand.
Meanwhile, the exchange rate of US dollar against BDT 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 67.70-Tk 68.00 in the kerb market Monday against Tk 68.50-Tk 68.80 of the previous working day, market insiders said.
The flow of US currency has increased in the kerb market ahead of the Eid festival and general election, they added.
"The lower exchange rate of US dollar in the kerb market compared to the inter-bank foreign exchange rate may help increase the supply of the greenback through banking channel in the near future," the BB official noted.
On the other hand, market players said the local currency should be depreciated more against the US currency to encourage exporters as well as help increase the flow of inward remittances.
"The exchange rate of local currency against US dollar will be re-fixed for increasing the flow of remittances," a senior official of a private commercial bank told the FE.
He also said the depreciation of BDT will not heavily increase the inflationary pressure on the economy because of fall in prices of commodities in the international market.