Taka Under Pressure as Dollar Gains Momentum in Interbank Market

The US dollar has continued its upward trend against the taka in Bangladesh's interbank market. On July 13, the weighted average rate of the greenback hit Tk 123 per dollar, and on July 30, it rose to Tk 123.82 per dollar.

This increase is due to increased demand for foreign currency to clear import bills, particularly from government agencies importing fuel and fertilizer. The country's imports have grown by 6.26% year-on-year to $64 billion during the July-May period, while exports declined by 2% year-on-year to $40 billion.

A top executive of a private bank attributed the pressure on the taka to increased import payments and a slowdown in remittances from migrant workers, which have been affected by recent festivals. Another banker noted that exports are likely to remain dull due to the escalating war in the Middle East and subsequent oil price hikes.