Taka depreciates for third day, dollar nears Tk123
Senior officials from several leading business conglomerates said that banks were charging an extra 20 to 25 paisa for Letter of Credit (LC) settlements
The Bangladeshi taka weakened further against the US dollar today (10 March), marking its third consecutive day of depreciation, with the exchange rate rising to a maximum of Tk122.95 per dollar from Tk122.70 yesterday (9 March). Market analysts attributed the decline to growing tensions over the escalating war in the Middle East, which has heightened demand for foreign currency to pay energy bills.
Bangladesh Bank allowed commercial banks to trade dollars at a higher rate to manage the pressure in the foreign exchange market, according to insiders. Senior officials from several leading business conglomerates said that banks were charging an extra 20 to 25 paisa for Letter of Credit (LC) settlements yesterday.
Yesterday, LC settlement rates ranged between Tk122.90 and Tk122.95 for major business groups. A senior official noted that when contacting banks yesterday morning, they were quoted Tk122.80 to Tk122.95, compared to Tk122.57–Tk122.72 yesterday.
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Last week, LC settlement rates were around Tk122.3–Tk122.35. An official from a private company said the rising dollar rate was creating challenges for businesses, warning that higher dollar prices lead to higher prices for other goods and could trigger further instability.
A deputy managing director of a private bank said the dollar market had remained stable for more than 18 months without artificial shortages. Still, a senior official noted that remittance purchases today at Tk122.70–Tk122.72 contributed to the recent rise.
Economists recently met with the central bank governor, emphasising the importance of maintaining foreign exchange reserves, which some market participants interpreted as a signal that the central bank might conserve reserves and refrain from selling dollars, even amid shortages.
While Bangladesh Bank has so far kept the market relatively stable, bankers cautioned that continued volatility could affect multiple sectors, underlining the need for timely central bank interventions to prevent a potential dollar crisis.
