Ending a continuous depreciation trend spanning five and a half years, the Bangladeshi Taka (BDT) has shown signs of appreciation against the US dollar, according to a Bangladesh Bank (BB) report released yesterday.
On a point-to-point basis from June last year to June this year, the value of the Taka appreciated by 0.06 percent. Furthermore, between August 30 and September 17, the local currency strengthened by 0.77 percent against the greenback.
Central bank data reveal that the Taka experienced an unbroken streak of depreciation against the US dollar from 2021 until September 17 of this year. During this prolonged period, the exchange rate surged from Tk 85.80 per dollar to a record high of Tk 123.95—reflecting a massive devaluation of Tk 38.20, or 45.05 percent.
However, the trend began reversing in the second half of this year. After peaking at Tk 123.95 on August 30, the dollar rate dropped by 95 paisa to Tk 123.00 on September 17, resulting in a 0.77 percent gain for the Taka over those three weeks.
The Bangladesh Bank report also evaluated regional currency movements from June last year to June this year. While the Indian rupee depreciated by nearly 9.5 percent, the Sri Lankan rupee lost over 10 percent, and the Indonesian rupiah declined by around 9 percent, the Malaysian ringgit and Chinese yuan both gained nearly 4 percent, and the Pakistani rupee appreciated by approximately 2 percent.
The central bank noted that after a prolonged period of weakening, the Bangladeshi Taka has transitioned to a relatively stronger position. Economists point out that a depreciating Taka traditionally elevates import costs for fuel, industrial raw materials, and food items, driving inflation and dampening real purchasing power for low- and middle-income households while increasing foreign debt servicing burdens. Conversely, a strengthening Taka relieves pressure on import expenditures and lowers the local currency cost of servicing external debt, though its broader economic impact will rely heavily on future trends in exports, remittances, foreign exchange reserves, and international market conditions.
— Daily Best News Desk • Fearless in the search for truth
Reported by UNB • Edited by the Daily Best News desk. Send corrections to [email protected].
