Taka slides further against dollar
The local currency depreciated by Tk 0.25 against the dollar in the past week after stability for nearly two months, treasury officials said.
The average exchange rate of the greenback rose to Tk 82.44 yesterday for import payments (bills for collection) from Tk 82.20 on June 3, according to statistics from Bangladesh Foreign Exchange Dealers Association (BAFEDA).
“Declining export earnings and payment pressures for imports, particularly fertiliser, have played a part in depreciation,” a treasury official of a private commercial bank said.
Usually, the taka depreciates when the country's import payments exceed exports and remittances. In Bangladesh, almost all of its oil demand is met by import. Recent import demand for fertiliser has put additional pressure on the exchange rate.
Exports declined 4.13 percent to $2.2 billion in May from a year earlier. Businesses pointed at the dip in demand for apparel items in the Eurozone due to the ongoing debt crisis.
A senior Bangladesh Bank official said the recent depreciation of the taka against the dollar is within limits.
“The depreciation is insignificant compared to that in India by 4-5 rupees in a month,” said the central bank official.
He hoped the exchange rate would remain at Tk 82.50 throughout June.
The taka witnessed massive depreciation -- over 16 percent -- in between January 2011 and January 2012.
The Daily Star/Bangladesh/ 12th June 2012