Thu, 22 February 2024
The Daily Ittefaq

Bangladesh's taka to depreciate by 4pc by June: Moody’s

Update : 30 Jan 2024, 16:04

Moody's Investors Service forecast the Bangladesh taka to decline 4% by June as limits on the currency may be eased, a move which it said could bolster the nation's dwindling foreign-exchange reserves.

Bangladesh Bank this month said it is evaluating a plan to introduce a crawling peg system for the local currency to keep it stable, which would be a step toward a flexible exchange-rate regime. The taka could trade at around 115 per dollar by the end of June, Moody's said, compared with 110 on Jan. 28.

"The introduction of the crawling peg would allow greater stability and predictability of the exchange rate, while further reflecting prevailing market forces compared to the current rate-fixing mechanism," said Marcus Yiu, analyst at Moody's in Singapore.

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