• Tuesday, Jun 28, 2022
  • Last Update : 04:24 pm

Taka weakens after remaining stable for 3 months

  • Published at 09:18 pm November 27th, 2014
Taka weakens after remaining stable for 3 months

The US dollar is slowly getting stronger against the local currency Taka due to the increasing trend in imports that took an upward trend in last few months.

The exchange rate of dollar rose to an average of Tk77.68 as of yesterday from Tk77.40 in the beginning of this month. The rate, however, remained stable at Tk77.40 a dollar during the last three months period due to the sluggish import growth. 

In an attempt to retain the dollar rate, Bangladesh Bank had bought more than US$5bn in last year.

“Dollar rate is gaining mostly because of the ongoing increasing trend in imports,” said Kazi Sayedur Rahman, general manager of Foreign Exchange Reserve and Treasury Management Department of Bangladesh Bank. 

He also blamed the importers for creating panic, which also contributed to the rise of exchange rate as they are buying more dollars unnecessary, just fearing further hike.

He, however, assured that there would be no dollar crisis as the central bank has adequate foreign currency reserve. 

Foreign loan inflow, which had earlier made the dollar available in the market, has witnessed insignificant inflow in the current month. Moreover, deferred payment of LC (letter of credit) might also be increased, which could be blamed for depreciation of local currency, he said. 

Kazi Sayedur Rahman, who termed the process to retain the exchange rate by buying dollar was abnormal, said: “Rather, the market is now behaving normally with fluctuation in the exchange rate but Bangladesh Bank kept the rate stable artificially by buying dollars and that behavior was abnormal.”

The import was 11.61% negative in July this year compared to same months in the previous year. 

The growth turned to positive from August with 43.70% rise in import compared to the same months of the last year and continued to increase till now, according to the Bangladesh Bank data. 

BB data shows that the LC settlement value was lower than the opening value in July. But in the recent months, LC settlement value turned to higher than that of opening value. 

The import expenditure value basis on LC settlement was

$2.8bn while LC opening value was $3.4bn in July this year. The LC settlement value stood at $3.3bn in August while LC opening value at $3.2bn.

Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail