BDT depreciates slightly against US dollar

The exchange rate of local currency depreciated slightly against the US dollar again on Thursday after more than a month despite the central bank’s support with foreign currency for the commercial banks.

The Bangladesh Taka (BDT) depreciated by two paisa on the day mainly due to higher demand for the greenback, according to the market operators.

The US dollar was quoted at Tk 82.98 each in the inter-bank foreign exchange (forex) market on Thursday against Tk 82.96 on the previous working day.

Earlier on February 26, the US currency was quoted at Tk 82.96 each in the forex market against Tk 82.94 on the previous working day.

Meanwhile, Bangladesh Bank (BB) is extending its foreign currency support to the banks continuously for settling import payment obligations.

As part of the move, the central bank sold US$ 17 million directly to seven banks on the day to meet the growing demand for the greenback in the market.

The central bank has resumed giving its support in recent months through selling the US currency to the banks directly to keep the market stable.

A total of $ 1.77 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.

“We’re selling the US dollar to the banks continuously to help settle their import payment obligations,” a BB senior official told the FE. He also said the central bank may continue providing such foreign currency support to the banks as per market requirements.

The market operators, however, said the demand for the US dollar is increasing gradually mainly due to higher import payment pressure, particularly of capital machinery, petroleum products and fertiliser and consumer items including food grains.

“The depreciation trend in local currency against the greenback may continue in the near future if the existing import payment pressure persists,” a senior executive of a public bank told the FE.

 

Source : The Financial Express, April 06, 2018