DHAKA, Feb 2: Bangladesh once again devalued its currency taka against the US dollar by 1.87 per cent or 85 paisa with effect from today - a move aimed at making the country's exports more competitive as well as building up a comfortable level of forex reserve.According to the Central Bangladesh Bank announcement, the middle price of one dollar will stand at taka 46.30 from its earlier rate of taka 45.45. "The adjustment is pursuant to the continuing policy objective of maintaining incentives for exports and for inflows from expartriate bangladeshis, keeping in view the unfolding trends of currency values of trade partners and competitors of Bangladesh", the bank said.
Henceforth, the Bangladesh Bank will buy and sell us dollars at taka 46.15 and taka 46.45, respectively.
This is the 12th downward adjustment of taka over the last one and a half year, since the Awami League government took office in June, 1996.
The last devaluation was done on November 23, 1997, fixing the buying and selling rates attaka 45.30 and 45.60 repectively. It was devalued four times in the second six months of 1996 and seven times in 1997. There had been more than 6.3 per cent devaluation of the taka in 1997.
Bank sources said the taka had been made cheaper against the dollar mainly because of pressure from the burgeoning garments sector and other exporters who last week reiterated their demand for devaluation.
Exporters said Bangladeshi exports had been facing uneven competition from the neighbouring countries due to the recent turmoil in south-east Asian economies."The readjustment was aimed at spurring remittance from the Bangladesh is working abroad.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
