Bangladesh taka sharply depreciates due to high import bill
25 Mar 22 2 min read
The exchange rate of the US dollar appreciated by 1.65 per cent to Tk 86.2 from Tk 84.8 at the beginning of August 2021.
Point-to-point inflation in February 2022 hit 6.17 per cent, 16-month high, as food prices have sharply gone up amid the prevailing high non-food inflation, according to Bangla media reports.
A depreciation of the taka would reportedly encourage exporters and discourage imports.
In the first eight months of FY22, the inflow of remittance dropped by 19.46 per cent, or $3.25 billion, to $13.44 billion from $16.69 billion in the same period of the previous year.
On the other hand, the country’s import payments rose by 46.23 per cent to $46.67 billion in July-January of FY22 against $31.92 billion in the same period of the previous year.
Though the country’s export earnings grew by 29.23 per cent to $27.98 billion in the first seven months of FY22 against $21.65 billion in the same period of FY21.
As a result, the country’s trade deficit rose to a record high of $18.7 billion at the end of January of FY22 against a deficit of $10.27 billion in July-January of FY21.
Fibre2Fashion News Desk (DS)
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