Taka weakens against US dollar again

The US dollar became slightly stronger against the Bangladeshi taka today as the inter-bank exchange rate rose again following the adoption of a market-driven exchange rate by Bangladesh Bank.

Today, the inter-bank exchange rate (selling) stood at Tk 122.78 per US dollar, up from Tk 122.60 a day earlier, according to the central bank's latest data.

The rate was Tk 122 on May 14, when the banking regulator announced the market-driven exchange rate.

The majority of banks are now selling US dollars to importers at Tk 122.70 while buying them from exporters and exchange houses at rates between Tk 122.30 and Tk 122.50, according to the websites of the lenders.

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Bangladesh overcomes the fear of floating

Bangladesh Bank Executive Director and Spokesperson Arief Hossain Khan told The Daily Star that the central bank is monitoring the foreign exchange market, which is now stable due to the growing inflow of US dollars from high remittance and export earnings.

The banking regulator has strictly warned banks not to manipulate the forex market, which helps keep the market stable, he added.

As part of the market-driven exchange rate, the central bank on May 14 lifted the Tk 1 spread between buying and selling rates of the US dollar by repealing a directive issued in January this year.

At the same time, it reinstated a circular issued in December 2024, allowing banks to "freely" negotiate the US dollar rate for both interbank and customer transactions.

That marked a formal return to a pricing framework driven by demand and supply.

A treasury head of a private bank, speaking on condition of anonymity, said the central bank and other authorities have instructed everyone to play a sensible role in the current situation.

Since Eid-ul-Azha is approaching, the US dollar flow is expected to increase.