Bangladesh Currency Depreciated Marginally Against U.S. Dollar

Dhaka, Bangladesh (AHN) - Bangladesh's currency, the taka (BDT), was depreciated marginally by 0.04 percent against the U.S. dollar on Tuesday, following a rise in demand for the greenback in the market.

The U.S. dollar was traded at BDT 68.95 in the foreign exchange market on Tuesday, the last working day of this calendar year, against BDT 68.92 of the previous working day, officials confirmed.

"The local currency has been depreciated against the U.S. dollar on the basis of market demand," a senior official of the Bangladesh Bank (BB), the country's central bank, told AHN Media in Dhaka.

In 2008, BDT was depreciated marginally by 0.54 percent against the U.S. dollar, due mainly to a short supply of the greenback in the inter-bank foreign exchange market.

The local currency was traded at BDT68.48 against the U.S. dollar at the end of July, 2008. However, from August 2008 BDT started depreciating marginally. By the end of 2008, BDT was traded at BDT 68.95 against the greenback, which means BDT depreciated by 0.54 percent from the opening level of 2008.

Compared to the previous four years, exchange rates between BDT and the U.S. dollar were fairly stable in 2008, the Citibank NA said in its annual market update 2008, released in the capital, Dhaka on Saturday.

In 2007, the market saw a BDT 1.92 difference between yearly high (70.40) and low (68.48). U.S. dollars traded within a BDT 6.75 range (66.20 - 72.95) in 2006.

"We observed similar scenario in 2005 (61.50 - 67.0) and 2004 (59.01 - 62.50)," the U.S.-based bank said.

Market operators, however, said the depreciation of BDT had started mostly since Oct. 19 following increase in demand for the U.S. currency in the market to settle import payment bills for petroleum products, fertilizer and food grains.

On Oct. 19, the US dollar was quoted at BDT 68.52- BDT 68.54 in the inter-bank foreign exchange market against BDT 68.52 on the previous working day, they added.