Taka strengthens against dollar thanks to remittance, export growth

Bangladesh’s currency, the taka, has strengthened against the US dollar, bolstered by recent growth in remittances and exports.

The exchange rate of the US dollar is falling against the taka due to a reduced pressure on paying import bills.

Bankers believe the price may continue to decline in the coming days.

On Thursday, banks were paying between Tk122.50 and Tk122.60 to exchange remittance. In contrast, just in the second week of this month, banks were paying between Tk123 and Tk123.20 for the same, reflecting a decrease of Tk0.50 to Tk0.70 in the dollar’s price within two weeks.

Bank officials predict a further decline in the dollar's value in the near future.

They argue that there is little likelihood of increased dollar demand in the next few months, as many investors are awaiting the upcoming elections before making new investment decisions. So, imports related to investment are unlikely to increase, they said.

Meanwhile, the Bangladesh Bank has said the dollar supply in the market is normal.

Central bank spokesperson Arif Hossain Khan said the dollar’s price will not be fully floated on the market immediately due to pressure from international donor agencies.