Fast depreciation of taka against dollar worries stakeholders

FE REPORT | Saturday, 23 October 2021

Business leaders have raised serious concerns over the speedy depreciation of Bangladesh taka (BDT) against American dollar as it is pushing the import costs up.

The BDT-dollar exchange rate in banks was recorded between Tk 86.20 and Tk 89.50 in Chattogram, according to the Chattogram Chamber of Commerce and Industry (CCCI).

But the inter-bank exchange rate as per the Bangladesh Bank (BB) was quoted Tk 85.6 last week.

The CCCI, one of the leading trade promoters in Bangladesh, has urged the central bank to intervene in the soaring rate of dollar.

It believes the import of capital machinery and other key food imports will suffer as a result of the volatility in the forex market.

CCCI president Md Mahbubul Alam suggested that the regulator take immediate measures in this regard.

In a letter to BB governor Fazle Kabir on Saturday, Mr Alam noted that a steep rise in the value of dollar against taka would adversely affect economic recovery.

He said the central banks should ensure stability in the forex market; otherwise, both import and export would be impacted.

The central bank's Intervention is imperative to keep the value of dollar at a reasonable level to avoid inflationary pressures in the local market, he cited.

However, a rise in the value of dollar helps boost both export and remittance inflow.

The sudden appreciation of dollar fuels fears that traders and entrepreneurs involved in imported consumer goods, capital equipment and industrial raw materials will suffer financially, and ultimately customers will take the plight, reads the letter.

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