Taka weakens further, BB sells $1 at Tk 104.5

The Bangladeshi taka today weakened further against the US dollar as the Bangladesh Bank started selling the American greenback to banks at Tk 104.5.

The move is aimed at adjusting the exchange rates gradually in line with the market demand and supply, a Bangladesh Bank official said.

The central bank sold $56 million to banks at the new rate, said a senior Bangladesh Bank official, seeking anonymity.

The central bank devalued the local currency Tk 103 from Tk 102 in the first week of April.

The central bank has been selling the dollars heavily to banks to help them meet their foreign currency requirements, particularly for import payments, amid the foreign exchange crisis that has lingered for a year.

"We are adjusting the exchange rate gradually," the BB official said.

In the interbank market, the greenback traded at up to Tk 107 on April 30 in contrast to Tk 86.45 a year ago.

The local currency has been under pressure against the dollar over the last one year owing to higher import payments than overall receipts from export and remittance.

As a result, the country's foreign exchange reserves have continued to decrease.

The reserves fell below $31 billion on April 30, when it stood at $30.92 billion in contrast to $44.01 on the same day a year ago.