The exchange rate of Bangladesh Taka depreciated significantly against the US dollar on Thursday, accelerated by the higher demand for the greenback to settle import bills.
The local currency lost its value by 15 poisha in the inter-bank foreign exchange market after nearly four months, according to market operators.
The US dollar was quoted at Tk 84.65 each in the inter-bank forex market on the day against Tk 84.50 of the previous working day, they said.
Bankers welcome the falloff.
"This will help boost export income as well as remittances," Syed Mahbubur Rahman, chairman of the Association of Bankers, Bangladesh (ABB), told the FE while explaining the possible impact on the latest depreciation of the local currency against the US dollar.
But Mr. Rahman, managing director and chief executive officer of Dhaka Bank, said such depreciation will push up the cost of importable products slightly.
"Taka has weakened against the US dollar in line with the market requirement," said MA Halim Chowdhury, MD and CEO of Pubali Bank Limited.
Besides, the local currency depreciated by a maximum 25 poisha against the US dollar at the customer level for settling import payment obligations.
The exchange rate of the US dollar rose to a maximum of Tk 84.75 each for sale of Bill for Collection on Thursday, from a maximum Tk 84.50 of the previous high.
But some banks quoted such rates ranging from Tk 84.65 to Tk 84.95, according to the market operators.
Talking to the FE, Mehmood Husain, MD and CEO of NRB Bank Limited, said higher import cost may inflame the inflationary pressure to some extent in the near future.
"Export competiveness in the global market along with the inflow of remittance will increase following such depreciation of the local currency against the US dollar," the senior banker noted.
Senior bankers predicted the exchange rate of taka would be depreciated in the near future to ensure competitiveness of the exporters in the global market.
India, Pakistan, Vietnam and China treated as main competitors of Bangladesh in the international market have already depreciated their currencies substantially against the greenback, they said.
"The depreciation of taka against the greenback is not similar to our competing countries," a senior treasury official told the FE without elaborating.
Meanwhile, the local currency depreciated by 75 poisha against the greenback in the inter-bank forex market from January 02 to October 03.
The greenback was quoted at Tk 84.65 each in the interbank market on Thursday against Tk 83.90 on January 02 this calendar year.
On May 06, the local currency lost its value by 5.0 poisha against the US currency on the same ground. The demand for the US currency is gradually increasing mainly due to higher import payment obligations, particularly for intermediate goods, fuel oils and capital machinery.
