After an extended period, the dollar has decreased to below 120 taka in relation to the taka, signifying a momentary alleviation in the economy. Market analysts and economists assert that the favorable influx of remittances, export revenues, and the steadiness of import expenses are the primary factors contributing to this shift.
As per the most recent information from Bangladesh Bank, on Monday (July 14), banks exchanged the US dollar at a rate ranging from 119.50 taka to 120.10 taka.
At the start of July, the exchange rate was between 122 taka 70 paisa and 122 taka 85 paisa. This represents the lowest rate observed in the past 11 months; prior to this, the dollar price had last decreased to 119 taka in August 2023.
Analysts report that confidence in the nation's economic sector has somewhat rebounded following the governmental transition. This shift has resulted in a notable rise in remittances and export revenues. Conversely, the pressure on the dollar in the market has diminished, leading to a reduction in its value, without a substantial increase in import expenses.
Officials from Bangladesh Bank reported that a significant influx of foreign exchange entered the country in June, attributed to support from the IMF, ADB, JICA, and AIIB. This has led to an increase in foreign exchange reserves and has contributed to the stabilization of the dollar market.
During the initial 11 months of the ongoing fiscal year (2024-25), merchandise exports generated $48.7 billion, whereas imports amounted to $62.5 billion. Consequently, the trade deficit reached $19.38 billion, reflecting a decrease of 4.17 percent compared to the corresponding period of the prior year.
Remittances have experienced notable success. In the recently concluded fiscal year (2024-25), expatriates remitted $30.33 billion, which is approximately 27 percent higher than the $23.74 billion sent in the prior year. This marks the highest remittance total recorded in the nation's history for a single fiscal year.
Consequently, the nation's foreign exchange reserves have reached $31.68 billion, marking the highest level in the past two years. At the conclusion of the last fiscal year, these reserves amounted to $26.71 billion.
In light of this economic development, Bangladesh Bank has implemented a new market-oriented approach for establishing the dollar exchange rate starting from May 15 of this year, wherein banks and customers collaboratively set the rate. Despite early apprehensions, the dollar has indeed decreased in value, and the foreign trade balance has mostly stabilized.
Economists assert that in order to sustain this trend, it is crucial to uphold regulated market oversight and consistent economic policies. Simultaneously, it is essential to implement effective measures aimed at broadening the sources of expatriate income and diversifying exports. This approach will enhance the currency's value in the foreign exchange market in the future, while also enabling the management of inflation levels.
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