The taka has been rendered one of the worst-performing currencies in South Asia in the last one year because of the plummeting foreign exchange reserves of Bangladesh for higher import payments.
Top lender State Bank of India (SBI.NS) has asked exporters to avoid settling deals with Bangladesh in the dollar and other major currencies as it looks to curb exposure to Dhaka's falling reserves, according to an internal document and a source.
The Bangladeshi taka today depreciated against the US dollar, hitting Tk 96 on the interbank platform after the Bangladesh Bank had decided last week to allow the market forces to set the exchange rate of the local currency.
The local currency today depreciated further against the US dollar, hitting Tk 92 against each green back in the interbank platform.
The taka yesterday lost 0.91 per cent in value against US dollars, the sharpest single-day fall in the past one decade, amid the falling supply of the American greenback against surging demand to settle import bills.
The Bangladeshi taka today faced a steep devaluation against the US dollar as the soaring import payments have created an acute shortage of the greenback in the banking sector.
Bangladesh has so far resisted calls for a major devaluation of its currency despite runaway imports amid higher food, energy and raw materials prices globally.