AKM ZAMIR UDDIN

The country’s foreign exchange market has remained volatile even though the Bangladesh Bank has depreciated the taka against US dollars four times this year.

The latest devaluation came yesterday when the BB depreciated the inter-bank exchange rate by Tk 0.25 to Tk 86.70 per USD.

Because of the currency devaluation, the importers had to buy the American greenback at as high as Tk 95 to pay import bills yesterday.

Banks usually sell US dollars to importers, under the arrangement known as BC (bills for collection) selling rate, by Tk 0.05 with the inter-bank exchange rate.

But, managing directors of four banks, requesting anonymity, say that they are now compelled to ignore the BC selling rate, which was quoted at Tk 86.75 per dollar yesterday.

This is because banks have to spend Tk 94-Tk 95 to purchase one dollar.

Bankers blame the rising import payments for the ongoing volatility in the foreign exchange regime.

The coronavirus pandemic had disrupted the supply chain around the world, which subsequently pushed up the commodity prices in the global market. The Russian invasion of Ukraine has deepened the crisis.

The central bank has depreciated the local currency on a regular basis in recent months in a bid to contain imports. But economists have urged the central bank to weaken the taka at a faster pace.

The BB devalued the local currency by Tk 0.20 to Tk 86.45 a dollar on April 28. The inter-bank exchange rate stood at Tk 84.80 on May 9 last year.

The country’s import payments increased 44 per cent year-on-year to $61.5 billion in the first nine months of the current fiscal year. Exports grew 33 per cent to $36.6 billion during the period.