Exporters of textiles and ready-made clothing were expected to profit from the change when the local currency started to decline against the US dollar while foreign currency reserves were being depleted, as is typically the case. In response to the Russia-Ukraine war, the taka lost nearly 25% of its value versus the dollar between February and September. Exporters in Bangladesh claim they were unable to benefit from the taka’s depreciation against the US dollar because they had to purchase US dollars at a higher price while opening letters of credit to import raw materials required to serve the international markets. If orderly and gradual, currency depreciation typically increases a nation’s export competitiveness.
42 of the 58 textile and ready-to-wear businesses listed on the Dhaka Stock Exchange properly submitted their statistics. Three businesses went bankrupt in the three months leading up to September, while eight of the 42 continued to suffer losses. Data obtained by Sandhani Asset Management shows that ten companies saw decreased profitability while the remaining ones saw better profits.
The leading profit-makers among the listed textile and RMG manufacturers are typically Malek Spinning, Maksons Spinning Mills, Matin Spinning Mills, and Square Textiles. However, Matin Spinning Mills, Square Textiles, and Maksons Spinning all reported lower profits in the first quarter of the current fiscal year.
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