The US dollar continues to depreciate against the Bangladeshi taka driven by a surge in expatriate remittances and lower import spending.
Over the past week, the dollar's value dropped by 61paisa (0.50 percent) in the inter bank market. On Thursday, the greenback traded at an average of Tk.123.20 down from Tk.123.81 the previous week. Despite this official drop, the open market remains strained, with dollars selling at a premium of Tk.126 to Tk.127 due to ongoing supply shortages.
"This is a positive development. The dollar is falling due to a significant surge in remittances" said Bangladesh Bank spokesperson Arief Hossain Khan. "In just the first 12 days of this month $1.5 billion in remittances entered the country."
Khan noted that a reduction in dollar demand for major imports, particularly fuel and fertilizers has also helped ease currency pressures.
According to central bank data, the $1.5 billion remitted in early August marks a sharp 42.2 percent year-on-year increase. If this strong momentum continues, total remittance inflows for August could approach $4 billion, potentially setting a new monthly record for Bangladesh. While the inter bank market shows clear signs of stabilization of currency dealers in Motijheel warn that open market rates will remain elevated until supply fully meets public demand.
