Taka slides further against dollar in interbank trade

The taka depreciated further by 25 paise to Tk 94.70 a dollar on Monday as the exchange rate of the dollar crossed Tk 100 for settling import payments.

The interbank exchange rate slid down by 50 paise to Tk 94.45 a dollar on Thursday (July 22).

Yet, the gap between the market rates and the interbank rate was Tk 5-7 per dollar, higher from Tk 1-2 in normal time. Here market rates include the dollar price that a customer needs to pay banks for import payments and the rate that a bank pays remitters. 

Bangladesh Bank spokesman Serajul Islam said the central bank sold $132 million on Monday at the new exchange rate.

Bangladesh’s foreign exchange reserves went down to below $40 billion for the first time in two years as import costs rose unusually due to the Russia-Ukraine war. The interbank exchange rate neared Tk 95 a dollar from Tk 86.50 in April this year, meaning that the local currency was devalued by over 10 percent.

It is not only Bangladesh, but other South Asian economies are facing the same or worse situation.

Sri Lanka’s current state of the economy is too bad – it has defaulted, and people are passing days without energy, adequate food and basic services. The US Dollar to Sri Lankan Rupee reached 362 Rupee.

Indian currency crossed Rs 80 per dollar for the first time and Pakistan’s currency was traded at Rs 227 for a dollar on Thursday.