FX.co ★ Bangladesh Taka Falls to Record Low

The Bangladeshi taka slid beyond 123 per US dollar in early April, marking a record low, as the central bank pursued a policy of gradual, managed depreciation to absorb the impact of rising global energy prices. Even so, Bangladesh Bank maintained that the foreign-exchange market remains stable, with no imminent risk of a sharp correction, citing balanced supply and demand conditions and sustained investor confidence.

These reassurances underscore policymakers’ efforts to calm investors amid ongoing currency weakness and concerns over foreign-exchange reserves. Foreign currency liquidity improved to $3.9 billion in early April, up from $2.3 billion in February, while reserves stand at $34.35 billion. Remittance inflows reached a record $3.8 billion in March, and early April inflows are running 21% higher than a year earlier.

According to the central bank, import and external debt payments are proceeding as normal. Bangladesh Bank has also refrained from active intervention in the currency market, despite an increase in net open positions, allowing the economy to adjust more smoothly to global shocks.