Bangladesh taka devaluates steeply against USD

18 May '22

2 min read

Pic: Shutterstock

The taka recently devaluated steeply against the US dollar as soaring import payments have created an acute shortage of the greenback in Bangladesh’s banking sector. The latest devaluation came when the Bangladesh Bank depreciated the inter-bank exchange rate by Tk 0.80 to Tk 87.5 per US dollar. The bank has depreciated the taka five times this year so far.

The exchange rate stood at Tk 85.8 per dollar on December 30 and Tk 84.8 per dollar on May 16 last year, according to statistics from the bank.

The banking regulator has also increased the bills for collection selling rate by Tk 0.85 to Tk 87.6 per dollar and banks are supposed to follow the rate while selling dollars to importers.

The central bank has been frequently urged by economists to depreciate the local currency by Tk 5-6 per dollar immediately.

The shortage of the greenback has already created instability in the foreign exchange regime, which is why the country’s central bank is now trying to restore discipline in the market by depreciating the local currency, a top English-language daily in the country reported citing a bank official.

Banks are charging more than Tk 95 for every US dollar from importers.

Bankers blame the rising import payments for the ongoing volatility in the foreign exchange regime.

Fibre2Fashion News Desk (DS)

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