Rupee is strengthening against dollar in currency market

The Dhaka Times Desk After almost a year of stable value of money against the dollar, money has started to strengthen against the dollar since last Monday. Economic experts believe that the value of the currency is strengthening due to the increase in export earnings and increase in remittances.

Last Monday, citing Interbank, it is known that the current exchange rate of dollar and taka in the currency market is 77.65 taka. But until last Monday, the exchange rate of dollar and rupee was 77.75 rupees. As a result, the value of rupees has increased by 10 paise in exchange for dollars. The price of dollar in banks is lower, last Monday the value of dollar in exchange of money in Sonali Bank was 77.30 paisa which is 35 paisa less than the value of currency market. As a result, the value of money has increased by about 45 paise against the dollar.

The Director General of Bangladesh Development Research Organization while pointing out the reason for the increase in the value of rupees in exchange for dollars said, "Exports of exporting companies have increased as a result of which the export income has increased. On the other hand, the flow of remittances sent by expatriates has been steadily increasing for the past few years. In this situation, Bangladesh Bank has maintained stability in the currency market through floating system. Bangladesh Bank buys dollars from the market to maintain the value of the rupee in exchange for dollars on a daily basis. But recently, after the foreign exchange reserves reached 20 billion dollars, the central bank reduced the rate of purchase of dollars from the market, in return the value of the rupee strengthened”.

According to the data of Bangladesh Bank, in the first eight months of 2013-14 financial year, Bangladesh Bank bought about 3.5 billion dollars from the market. In the financial year 2012-13 this rate was 479 million dollars. In early 2012, the value of the dollar rose to 85 rupees. Bangladesh Bank also said that in 2003, the floating currency system was introduced in Bangladesh. Through this system, the exchange of foreign currency is left to the money market. Until then, the central bank used to fix the exchange rate of taka and dollar.

A depreciation of the dollar at current exchange rates will not have much impact on export earnings. However, if it decreases more, it will have an effect. But it also has a profitable side. This reduces the price of imported goods. Bangladesh and India are almost equal in terms of current dollar reserves. Last April, the central bank of India, State Bank of India's dollar reserves stood at 20 billion US dollars. The rupee has also depreciated against the dollar. Currently, the dollar to rupee exchange rate is 54.60 taka. At this time last year, the dollar to rupee exchange rate was 68 rupees. According to Bangladesh Bank sources, the reserve of Bangladesh Bank will stand above 20 billion dollars until the Asian Clearing Union bill is paid.

According to the data of the Export Development Bureau, export income has increased by about 13 percent compared to the previous period. Remittance inflows last March broke all previous records. Remittance income was $128 million in March alone. Which is the highest remittance ever. Earlier in December last year it was $121 million and at the beginning of this year it was $126 million.