Taka Falls for Third Straight Day as Dollar Demand Rises

The Bangladeshi taka weakened further against the US dollar on Monday (10 March), marking its third consecutive day of depreciation. The exchange rate rose to Tk122.95 per dollar, up from Tk122.70 on Sunday (9 March).

Market analysts say the decline is linked to rising tensions from the escalating conflict in the Middle East, which has increased demand for foreign currency to pay energy import bills.

Sources said Bangladesh Bank allowed commercial banks to trade dollars at a slightly higher rate to manage pressure in the foreign exchange market.

Senior officials from several large business groups said banks charged an additional 20–25 paisa for Letter of Credit (LC) settlements on Sunday. LC settlement rates for major business groups ranged between Tk122.90 and Tk122.95.

A senior corporate official said banks quoted rates between Tk122.80 and Tk122.95 yesterday morning. On the previous day, rates ranged between Tk122.57 and Tk122.72.

Just last week, LC settlement rates were around Tk122.30 to Tk122.35.

A private sector business official warned that the rising dollar rate is creating pressure for import-dependent companies. Higher dollar prices often lead to increased costs for imported goods and may push up overall market prices.

A deputy managing director of a private bank said the dollar market had remained stable for more than 18 months, without major artificial shortages. However, another banking official noted that remittance purchases at Tk122.70 to Tk122.72 today also contributed to the recent rise in the exchange rate.

Economists recently met with the governor of Bangladesh Bank and emphasised the need to protect the country’s foreign exchange reserves. Some market participants believe this signals that the central bank may limit dollar sales even during short-term shortages.

Although Bangladesh Bank has so far kept the currency market relatively stable, bankers say continued volatility could affect several sectors. They stress that timely intervention from the central bank may be necessary to prevent further pressure on the dollar market.