Finance News

The value of money is 45 paise

Bangladesh Bank has again devalued the US dollar. Last Wednesday, the exchange rate of the US dollar was increased by 25 paise to 7 rupees 45. This will benefit exporters and expatriates. On the other hand, the cost of importers
Earlier, the central bank had raised the exchange rate of the dollar by 20 paise to Tk 8 in early January. And on March 23 it was again increased by 20 paise to 8 rupees 20 paise. As a result, the value of money in two phases is about one month.

Bankers say that the income of expatriates has increased due to Eid. However, the rate at which imports have increased is not going to cover that cost with expatriate income and export income. As a result, the country’s currency market is now volatile with the dollar. Bankers say the dollar crisis is not showing any signs of abating soon. This crisis is affecting the foreign exchange reserves deposited in the central bank. Besides, there has been a crisis of cash in the banking system. Because Bangladesh Bank is withdrawing money from the bank by selling dollars. This is also creating a current account deficit.

Due to the increase in the price of goods in the world market, now the cost of imports has increased a lot. Expatriate income has not increased much compared to that. That is why the pressure on the US dollar is increasing in the banking system and in the open market. In the first seven months (July-February) of the current fiscal year 2021-22, imports have increased by 48.6 percent. Compared to February last year, imports increased by 49.61 percent in February. This has led to a huge increase in the demand for dollars. And in July-March of the financial year, in these 9 months, the expatriate income has decreased by 16.64 percent. At this time, the export income has increased by about 33 percent. This is not meeting the demand for dollars. For this reason, Bangladesh Bank is constantly selling dollars to banks