DHAKA, Jun 3 (NNN-BSS) – The central bank of Bangladesh, yesterday withdrew fixed U.S. dollar-taka exchange rate, allowing the market to set the price, based on demand and supply.
Md Serajul Islam, spokesperson and an executive director of the Bangladesh Bank (BB), made the announcement. The latest BB move aims at restoring stability in the foreign exchange market, after the central bank’s latest measure did not yield much effect.
The central bank of Bangladesh at the end of last month set a uniform USD-taka exchange rate for international trade to rein in currency volatility.
Md Serajul Islam said that, the bank took the decision as inflow of inward remittances had declined sharply in the last couple of days.
“This has created shortage of the American greenback in the market,” Islam was quoted as saying, in a report of leading English newspaper, The Daily Star.
BB communicated the decision to banks verbally, and the move has already come into effect.
The central bank of Bangladesh has so far depreciated the taka against the U.S. dollar seven times, this year alone.– NNN-BSS
