Thursday, 21 October, 2021
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Taka weakens against dollar

  • Staff Correspondent
  • 1 October, 2021 12:00 AM
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Taka weakens against dollar

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The US dollar price jumped to Tk 89 in the kerb market as people are purchasing additional dollar to meet import and foreign travelling cost in the post-lockdown period, the sector insiders said. 

Bangladesh Bank (BB) on Thursday sold per USD at Tk 85.50 while the exchange rate in the open market (curbs) was Tk 89. The USD exchange rate on August 2, 2021 was Tk 84.80.

Among the state owned banks, the Sonali Bank sold per USD at Tk 87.20, Agrani Bank at Tk 87.40 on Wednesday.

Economists said Bangladesh’s economy remains in right track and there is no reason to be worried as such fluctuation of currency exchange rate happenes sometimes.

Former adviser of caretaker government Dr. Mirza ABM Azizul Islam told the Daily Sun that import demand has increased in the post-lockdown period while industrial production has been showing a rising trends.

The price increase of LNG and petroleum products in the global market is also another factor behind the raise the  dollar demand as Bangladesh uses dollar to meet all kind of import payment, he said.

The country’s forex reserves is high and inward remittance flow are also good, so there no reason to be worried taka being weakening in this stage, but a cautionary measures should be  taken for stenciling the prices of local commodity markets, Mirza Aziz said.

Former BB governor Dr. Salehuddin Ahmed said the exporters are happy when taka gets weaker, but it create pressure to cause a hike in commodity prices in the domestic market.

The BB earlier spent about Tk700 billion in the fiscal year 2020-21 to purchase additional dollars from the market to keep money market stable.

BB spokesperson Md. Serajul Islam said the central bank has to buy the foreign currency from banks as the existing rule does not allows banks to keep additional dollars.

According to existing policy of BB, a bank can hold foreign currency worth 15 percent of its capital. This is called net open position (NOP) limit of commercial banks, he said.

If there is more dollars in the banks than the prescribed limit, either the concerned bank has to sell the dollar in the interbank money market or it has to sell it to Bangladesh Bank, Serajul Islam said.

On the other hand, demand import, spending for travelling, consumption of foreign luxury items and spending for Hajj as well as Umrah have declined during the Covid-19 pandemic.