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The exchange rate of the taka has depreciated by 25 per cent in the last 13 years against the US dollar, and fell to an unprecedented Tk 86 against the dollar at the beginning of this week, as the Bangladesh Bank devalued it by 20 paisa on the inter-bank exchange market on January 9. The devaluation has potential to boost the country’s garment exports.
In the last five months, the Bangladeshi currency has lost its value by Tk 1.20 or 1.41 percent against the US dollar. Despite holding a stable position for a month and a half, the depreciation occurred on Sunday. In February 2009, one had to spend Tk 69 to buy a US dollar.
As the country has adequate forex reserves of over $44 billion, Bangladesh Bank officials suggest not to be worried about taka depreciation, according to Bangladeshi media reports. The masses, however, may have to face difficulties due to higher prices resulting from currency depreciation.
The exchange rate of the taka has depreciated by 25 per cent in the last 13 years against the US dollar, and fell to an unprecedented Tk 86 against the dollar at the beginning of this week, as the Bangladesh Bank devalued it by 20 paisa on the inter-bank exchange market on January 9. The devaluation has potential to boost the country’s garment exports.
However, the value of taka has depreciated every year except one during the last 13 years. Bangladesh trades internationally by US dollar.
Fibre2Fashion News Desk (DS)
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