Headline
** Their Lordships would not convict him as enemy of the country if anyone had opposed Padma Bridge ** Desperate bid to keep reserve stable ** College teacher Utpal murder: Prime accused held in Gazipur ** WB Board approves $1.03 billion for Bangladesh and Nepal to help improve regional trade ** Inner containment dome installed at Unit-2 of Rooppur N-power plant ** Adity Sarker, a doctor, dies from self-inflicted burn wounds ** College teacher murder: Prime accused’s father arrested from Kushtia ** 135 Indian fishermen detained by Navy ** At least 51 dead in prison riot fire in Colombia, prisons agency says ** River transporters face uncertainty over ‘special’ Eid services ** Siltation of riverbeds and haors is the main cause of floods ** DUTA protests humiliation, killing of teacher ** Ferry services from Mawa terminal to continue: State Minister ** Padma Bridge to transform Bagerhat’s tourism industry ** Truck overturns after crossing Padma Bridge, injuring four people ** College teacher ‘beaten by students with cricket stump’ dies in Savar ** HC says govt must identify those who conspired against Padma Bridge project ** Fire at shoe factory in city under control ** Padma Bridge: Over Tk 2 cr toll collected from vehicles on 1st day ** Aggressive approach to collect more revenue is repressive for people ** Soybean oil price decreased by Tk 6 per liter ** Flood: 2 more deaths pushes up toll to 84 ** Padma Bridge opens to traffic; Hundreds of vehicles seen at Mawa and Jajira ends ** 2 killed in Rajbari road crash ** Global Covid cases near 549 million **

Strengthening of taka artificially may leave an adverse impact on macro economy: Experts

23 May 2022
Strengthening of taka artificially may leave an adverse impact on macro economy: Experts


The taka faced less depreciation against the US dollar compared to other South Asian currencies in the last one year, eroding the export competitiveness of the country against its peers. This seems that Bangladesh has been trying to tackle the ongoing global economic crisis by strengthening its currency artificially but it may leave an adverse impact on the macro-economy, warn experts. The currencies of South Asian countries except the Maldives experienced a devaluation of between 6.06 per cent and 79.82 per cent in the past one year whereas the taka weakened by 3.18 per cent.


All currencies in South Asia, which consists of Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka, are now under pressure like other currencies in the rest of the world due to the global supply chain disruptions and pent-up demand. The pandemic has spawned the crisis and it has now been exacerbated by Russia's invasion of Ukraine.
Among the countries, Sri Lanka is facing an acute foreign exchange crisis, which has already forced its prime minister to step down. Pakistan's foreign exchange regime is witnessing volatility as well. Amid the volatile situation, the Bangladesh Bank is now giving all-out efforts to keep the foreign exchange market stable by weakening the local currency to some extent, ignoring the natural course of demand and supply.


The central bank has depreciated the taka five times this year, but the initiatives were not enough given the surging import payments, which have already generated a record trade deficit. Before the outbreak of the latest financial crisis, the central bank had not depreciated the taka significantly. The rate stood at Tk 84.80 per USD in May last year.


Bangladesh has tried to strengthen its currency artificially, so the ongoing global volatility has created enormous pressure on the taka. Before the outbreak of the latest financial crisis, the central bank had not depreciated the taka significantly. The peer countries of Bangladesh have been devaluing their currencies gradually over the years, whereas the BB has not followed the same path. The global financial trend is becoming worse day by day and we must be prepared to tackle the looming danger of economic recession.

Tariff
Add Rate