Dollars selling for Tk100 on Sunday

[bluesky]

Dollar prices up again

A dollar selling for Tk93.95 now

www.dhakatribune.com

Dollars selling for Tk100 on Sunday​

Since Sunday morning, dollars have been sold at Tk100-100.50

Syed Zakir Hossain/Dhaka Tribune
Tribune Desk
July 17, 2022 9:41 PM

The dollar price jumped over Tk100 in the kerb market on Sunday (17 July). The money changers in the capital sold dollars at Tk99.60-99.80 Saturday.

Since Sunday morning, dollars have been sold at Tk100-100.50. Meanwhile, money changers are buying dollars at Tk99.80-99.90.

An official of a money changer at Motijheel in the capital said that many customers were coming to them to buy dollars, but fewer people were coming to sell.

The demand for dollars increased as a result, but the supply was yet to increase, so the price spiked, he added.

The Bangladeshi Taka continued to depreciate against the US dollar on Wednesday, with the interbank exchange rate standing at Tk93.95 per dollar.

It marked the 19th depreciation of Taka against the dollar in 2022.

The central bank had previously allowed free floating of the dollar, but it intervened in the forex market by setting the interbank exchange rate.

The Bangladesh Bank is selling the USD every day to banks in order to cool down the forex market.

 

[bluesky]

Since Sunday morning, dollars have been sold at Tk100-100.50.

The value of the dollar is up against all the major currencies. Taka cannot be an exception. It is also a factor that BD is importing more than it exports. No wonder, Taka is depreciating.

Imports of luxury items must be curbed. However, since the taxation system is inefficient, therefore the govt collects import duties on the imported goods. This is a good source of revenue.

The country has to import many goods because it neglected to build the production factories in the country. So, necessary/ unnecessary items are imported.

I hope the govt will now open its eyes to reality and let the private sector build manufacturing plants to meet the domestic demands for factory goods.

Not doing so, will permanently cripple the Taka. It may go below Taka120 for one US dollar.

 

[bluesky]

A depreciated taka can benefit the Bangladesh economy by boosting exports. But in the current scenario of depressed global demand, it is unlikely to benefit the country.

Or, can it benefit?

 

[Bilal9]

A depreciated taka can benefit the Bangladesh economy by boosting exports. But in the current scenario of depressed global demand, it is unlikely to benefit the country.

Or, can it benefit?

@bluesky bhai, global apparel demand is not "depressed" by far.

Exports are growing YOY. On the Bangladesh exports to USA in apparel sector, look at the % change column alone in various categories.

Data as of 5/2022

Major Shippers Country: BNGLDSH

 

[bluesky]

@bluesky bhai, global apparel demand is not "depressed" by far.

Exports are growing YOY. On the Bangladesh exports to USA in apparel sector, look at the % change column alone in various categories.

Data as of 5/2022

Major Shippers Country: BNGLDSH

Today, I watched an Indian video. He was expecting $100 billion in textile exports for BD by 2026. Let us hope for the best.

 

[Bilal9]

Today, I watched an Indian video. He was expecting $100 billion in textile exports for BD by 2026. Let us hope for the best.

Way optimistic I have to say....

 

[BananaRepublicUK]

A depreciated taka can benefit the Bangladesh economy by boosting exports. But in the current scenario of depressed global demand, it is unlikely to benefit the country.

Or, can it benefit?

Global Super rich are moving their cash and equity into US dollars.

Counties with oversized stock markets - that attracted dollar - will be hit hardest.

 

[mmr]

Let the free market rule. 150 taka or 200 dont matter. Controlling fx never works for poor countries.

 

[bluesky]

Let the free market rule. 150 taka or 200 dont matter. Controlling fx never works for poor countries.

In a free fall, taka may go down to !20 for a dollar immediately. However, when the export volume is up the currency may come up. For the time being Taka depreciation will help the exporters.

More exports and lesser imports.