DHAKA, Nov 23, 2023 (BSS) - Bangladesh Bank (BB) has lauded the recent
decision of Bangladesh Foreign Exchange Dealers' Association (Bafeda)
and the Association of Bankers, Bangladesh (ABB) to depreciate the
dollar by Taka 0.50.

"In the last several months, we closely monitored the demands for
imported products and their supply. Our observations reveal a surplus
in the current account balance. Although our financial account is
currently in deficit, it is anticipated to improve in the upcoming
days, with debt payments gradually decreasing," said BB Spokesperson
Mezbaul Haque at a press conference at the central bank headquarters
in the city.

"As debt repayments reduce, our demand for dollars will ease. Most
letters of credit are now settled at sight, maintaining control over
the demand for dollars in imports," he added.

He said remittances are on the rise, ensuring a healthy supply of
foreign exchange.

Highlighting the positive position of all banks' Net Open Position,
Haque emphasized that there is an ample supply of dollars. Therefore,
BAFEDA's decision to depreciate the dollar by Taka 0.50 per dollar was
deemed prudent, he added.

As per BAFEDA and ABB decision, the price for purchasing dollars for
export proceeds and remittance fell to Taka 110, down from Taka 110.50
and the price of selling dollars for import settlements was set at
Taka 110.50 which was Taka 111 earlier.

This marks the first adjustment in the dollar price since August 2021
when the Bangladesh Bank was setting the price. Since September of the
same year, BAFEDA and ABB have been jointly determining dollar prices
to stabilize the exchange rate, making this recent move a significant
step in managing the currency's valuation.