Staff Reporter :
The dollar was traded at Tk 105 in the open market on Sunday, setting a record against the local currency.
The greenback was sold at Tk102.50 on Thursday.
But the dollar rate yesterday increased by at least Tk2.50 in the kerb market amid shortage of the US currency in the forex market.
Currency dealers said shortages of the greenback in the banking system have pushed up the dollar rate in the in the kerb market.
“We sold dollar at 105 at the trading hours and it may go further high if the shortage of dollar persists,” said a currency trader of an exchange house.
The US dollar is appreciating in value against local currency in the recent months amid depleting foreign exchange reserve, caused by the increasing current account and trade deficits and declining inflows of remittance.
Recently, the country’s foreign exchange reserves declined to $39.77 billion. This is the first time in two years that the reserve dropped below the $40 billion mark, according to the central bank data.
Moreover, the falling reserve also led to a significant devaluation of the nation’s currency against the US dollar. Taka has been devalued by 11.38 per cent in a year.
Bangladesh’s trade deficit hit a historic high of $30.81 billion in the first 11 months of the last fiscal year (FY 2021-22) year.
The higher trade deficit also registered a record current account deficit of $17.23 billion in the first 11 months of FY22 in contrast to a deficit of $2.78 billion a year ago, according to Bangladesh Bank (BB) data.
Besides, between July and May last fiscal year, imports increased to $75.40 billion, up 39 per cent year-on-year when exports grew 33 per cent to $44.58 billion.
Such a situation has created a tremendous pressure on the foreign exchange reserves, prompting a cash dollar crisis in the forex market.
The central bank released a record $7.47 billion from its reserve to the market between July 1 and June 28 last fiscal year to ease the dollars crisis. But the crisis still persists due to soaring import cost.
