Major foreign currencies, including the euro, British pound sterling, Chinese renminbi, Japanese yen, and Indian rupee, are strengthening against the Bangladeshi taka, following the trend set by the US dollar. The inter-bank selling rate for the US dollar has risen from Tk 95 to Tk 109.50 in a year, while the euro increased from Tk 95.15 to Tk 119.66 during the same period.
The Swiss franc led the appreciation with a 28.25% year-on-year increase against the taka till July. Around 90% of foreign trade in Bangladesh is conducted in US dollars due to its stability, despite the use of other currencies rising gradually. The taka’s weakness results from slow supply compared to high demand, driven by higher import payments than export earnings and inflation. Reducing inflation is essential for the taka to strengthen against foreign currencies. Bangladesh has expanded its trade settlement currencies to include the Chinese yuan and Indian rupee, in addition to several other major currencies.