Taka Depreciates as Demand for US Dollar Skyrockets

The Bangladeshi taka has continued to depreciate against the US dollar in recent weeks, driven by increased demand for foreign currency to settle import bills.

In interbank trading on July 13, the weighted average rate of the greenback hit Tk 123 per dollar. By July 30, this had risen to Tk 123.82 in the interbank market and Tk 123.88 on the spot market, according to Bangladesh Bank data.

The demand for foreign currency has been fueled by a surge in imports, particularly of fuel and fertilizer by government agencies. During the July-May period of FY26, Bangladesh's imports grew 6.26 percent year-on-year to $64 billion, while exports declined 2 percent year-on-year to $40 billion.

Bankers attribute this trend partly to a slowdown in remittances from migrant workers and Bangladeshis living abroad, which had reached a record $35.5 billion in FY25-26 but have since eased. The export sector is also expected to remain sluggish due to rising oil prices resulting from the conflict in the Middle East.

However, some bankers argue that a weaker taka will enhance the competitiveness of exports and boost foreign exchange earnings in the long term. Meanwhile, the Bangladesh Bank has halted buying US dollars from the market since June 8, having purchased $6.4 billion between July 2025 and June 2026 to bolster foreign exchange reserves.