Taka drops marginally against dollar

The Taka has dropped by three paisa against the dollar after being steady against the greenback for more than eight months.

From Tk 77.80 for a dollar, the exchange rate dropped to Tk 77.83 on Thursday.
 
If the Taka continues to weaken against the dollar, it may augur well for exports and remittances.
 
"Demand for dollar is up in the market, so this has happened. But this won't be bad if it continued because this make our exports more competitive," said Bangladesh Bank’s Forex Reserve and Treasury Management Division General Manager Kazi Saidur Rahman.
 
"Remittance flow will go up because those sending money from abroad will get more value."
 
A weaker Taka means one gets to import more from Bangladesh by paying less in dollars. 
 
A strong Taka was less welcome by exporters and more by importers who had to pay less for what they brought in from other countries.
 
The Chinese have already devalued the yuan from 6.18 for a dollar to 6.34 for a dollar just to boost the country's exports.
 
But that devaluation caused a downslide in Asian stock markets including China's.

The Bangladesh Bank had rejected advice to devalue the Taka to boost exports. But after the Taka fell on Thursday, the central bank seems to take it in its stride.
 
It continued to buy dollars – $20 million on Thursday alone – to keep up the demand for the greenback.
 
"This is our first dollar purchase in fifteen days," said Saidur Rahman, suggesting the Bank was trying to drive up demand for dollar that would strengthen it against the Taka.
 
So far in the 2015-16 fiscal, Bangladesh Bank has purchased $1.29 billion – $0.87 billion July and $0.33 billion in August.
 
If the dollar continues to gain against the Taka, it may boost not only exports but also remittances which showed a downward trend in August against June and July.