Dollar exchange rate against taka on the rise

Detailed summary

The interbank exchange rate of the US dollar continues to rise due to import payment pressure for oil, gas and essential commodities ahead of the upcoming Ramadan. The weighted…

The interbank exchange rate of the US dollar continues to rise due to import payment pressure for oil, gas and essential commodities ahead of the upcoming Ramadan.

The weighted average rate of the American greenback climbed to Tk 124.65 today, up from Tk 124.42 a day earlier, according to Bangladesh Bank (BB) data.

Bankers said the rise was driven mainly by higher payments for oil and gas imports and for essential commodities needed for Ramadan.

Today, most private lenders quoted the dollar at Tk 124.98 for spot selling and Tk 123.98 for spot buying.

Between July and September, Bangladesh’s imports of petroleum products rose 105 percent year-on-year to $4.2 billion, accounting for most of the increase in total imports. Food imports also climbed, with edible oil purchases up 54 percent and wheat imports up 66 percent.

Bangladesh’s trade deficit jumped 31 percent year-on-year to $7.48 billion in July-September of this fiscal year, as the fuel import bill more than doubled.

Industry insiders said global fuel prices had risen amid tensions in the Middle East, inflating the country’s import bill.

In October, banks opened import letters of credit (LCs) worth $7.32 billion while settling $5.95 billion, BB data showed.

The BB recently directed commercial banks to keep the cash margin for opening import LCs for a set of essential food items at the minimum level ahead of Ramadan.

Opening of the article, excerpted from The Daily Star. To read the rest, open the article on the publisher's site.