The exchange rate of the Taka has depreciated by 25 percent in the last 13 years against the US dollar, and fell to an unprecedented Tk 86 against the dollar at the start of the week, as the central bank looks to adopt a policy of devaluation to boost exports and remittances.
Devaluation can boost a country’s exports by making its products more competitive in international trade.
As the country has adequate forex reserves of over $44 billion, Bangladesh Bank (BB) officials suggest not to be worried of taka depreciation. But the common people may have to bear the brunt of higher prices due to the impact of taka depreciation.
In the last five months, the Bangladeshi currency has lost its value by Tk 1.20 or 1.41 percent against the US dollar.
The taka was devalued once again by 20 poisa on the inter-bank exchange market on Sunday against the dollar. Despite holding a stable position for a month and a half, the depreciation occurred on Sunday.