Home / Business / Bangladesh Bank devalues currency by Tk1.60

Bangladesh Bank devalues currency by Tk1.60

In a bid to tame the restive foreign exchange market the Bangladesh Bank has depreciated the local currency by Tk1.60, the highest so far, to fix the exchange rate of US dollar at Tk91.50.

Monday’s devaluation of taka, for the ninth time this year, came as the central bank is grappling with the growing demand of the greenback compared to supply.

Md Sirajul Islam, executive director and spokesperson of BB, said “The rate at which Bangladesh Bank sells dollars to banks is considered as the inter bank selling rate.”

On Monday, the central bank sold per US dollar at Tk91.50. Last Thursday, the BB depreciated taka by Tk0.90 and fixed the exchange rate at Tk89.90, UNB reports.

At the beginning of January this year, the central bank increased the exchange rate of the dollar by Tk0.20 to Tk86.

On March 23, taka weakened by Tk0.20 and fixed exchange rate at Tk86.20. On April 27, it was devalued by another Tk0.25. Then the exchange rate of per dollar stood at Tk 86.45. On May 9, the exchange rate of taka was devalued by Tk0.25 to and fixed it to Tk 86.70.

Then on 16 May the value of taka was reduced by Tk0.80 and the exchange rate was fixed to Tk 87.50 against per US dollar. Then on May 23, taka depreciated by another Tk0.40 and the price was fixed at Tk87.90.