FE Report

Bangladesh taka (BDT) was depreciated marginally by 0.04 per cent against the US dollar Tuesday, the last working day of this calendar year following a rise in demand for the greenback in the market.

US dollar was traded at Tk 68.95 in the foreign exchange market on the day against Tk 68.92 of the previous working day, officials confirmed.

"BDT has been depreciated against the US dollar on the basis of market demand," a senior official of the Bangladesh Bank (BB) told the FE, adding that the central bank is watching the market closely.

In 2008, BDT was depreciated marginally by 0.54 per cent against the US dollar due mainly to short supply of the greenback in the inter-bank foreign exchange market.

BDT was traded at Tk 68.48 against the dollar at the end of July, 2008. However, from August 2008 BDT started depreciating marginally. By the end of 2008, BDT was traded at Tk 68.95 against the greenback, which means BDT depreciated by 0.54 per cent from the opening level of 2008.

Compared to the previous four years, exchange rates between BDT and US$ were fairly stable in 2008, the Citibank NA said in its annual market update 2008, released recently.

In 2007, the market saw a Tk 1.92 difference between yearly high (70.40) and low (68.48). US$ traded within a Tk 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 bank said.

Market operators, however, said the depreciation of BDT has started mostly since October 19 last following increase in demand for the US currency in the market to settle import payment bills for petroleum products, fertiliser and food grains.

On October 19, 2008, the US dollar was quoted at Tk 68.52- Tk 68.54 in the inter-bank foreign exchange market against Tk 68.52 on the previous working day.