Siddique Islam
Depreciating trend of the local currency against the US dollar is continuing despite the central bank's foreign currency support to the commercial banks.
The exchange rate of Bangladesh Taka (BDT) depreciated by five paisa against the greenback in the last two days mainly due to higher demand for the US currency in the market.
The US dollar was quoted at Tk 82.85 each on Wednesday against Tk 82.83 of the previous working day. It was Tk 82.80 on Monday, according to the market operators.
On the other hand, the Bangladesh Bank (BB) has strengthened its foreign currency support to the banks for settling import payment obligations, particularly of food grains, fuel oils and capital machinery. As part of the move, BB sold US$24 million directly to seven commercial banks on Wednesday to meet the growing demand for the greenback in the market. On Tuesday, the central bank similarly sold $25 million to five banks on the same ground.
"We're selling the US currency to the banks at market rate for making their import payment bills," a BB senior official told the FE. He also said the central bank may continue providing such foreign currency support to the banks in line with the market requirement.
BB has resumed giving the support in the recent months through selling the US currency to the banks directly to keep the market stable. A total of $1.20 billion was sold to the commercial banks since July 01 of this fiscal year, 2017-18, as part of its ongoing support, according to BB's latest data.
The demand for the US dollar is gradually increasing, mainly due to higher import payments pressure, particularly of capital machinery, petroleum products, consumer items and food grains.
- Courtesy: The Financial Express/Jan 18, 2018
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