The Bangladesh Bank (BB) increased the US dollar exchange rate by Tk12 in 2024, resulting in a 12.72% depreciation of the local currency, the taka, over the year.
A central bank data analysis shows that the central bank fixed the dollar exchange rate at Tk122 on December 31, compared to Tk110 in January 2024. This indicates a Tk12 increase in the dollar's price and a corresponding 12.72% loss in the taka's value.
Bangladesh has been struggling with a dollar crisis for three consecutive years, driving up the dollar's price and weakened the taka further.
Meanwhile, banks have also increased the dollar price by Tk2 for both buying and selling. Later, the taka's value dropped by another Tk2. Banks will now sell the dollar to customers for sectors such as imports, loan repayments, and others at a maximum rate of Tk122.
Bangladesh Bank increases crawling peg rate by Tk 2
Ashraf Ahmed, former president of the Dhaka Chamber of Commerce and Industry (DCCI), noted that the banks' move to raise the dollar price will escalate import costs. As a result, the price of imported goods will rise since more money is needed to pay for them, he said.
Talking to UNB, Dr Tawfiqul Islam Khan, Senior Research Fellow at the Centre for Policy Dialogue (CPD), highlighted the inflationary impact of the taka's depreciation. The devaluation by Tk2 means that the prices of goods will inevitably increase. This, coupled with the rising cost of imported goods, will add further pressure on inflation, he pointed out.