The Taka has been devalued further against the US dollar by Tk0.40.
The interbank exchange rate stood at Tk87.90 per dollar on Monday, up from Tk87.50 on Sunday, said a Bangladesh Bank official.
The demand for dollars recently grew mainly due to rising import payments. Such payments stood at $61 billion between July and March of this fiscal year while export earnings were $36 billion, resulting in a trade deficit of $25 billion, the central bank data showed.
To meet the growing demand, the central bank has continuously been injecting dollars into the market since August last year.
It injected over $5 billion into the banking sector till May 16.
The central bank devalued taka by Tk0.80 against the dollar on May 16, the highest depreciation of the local currency in a single day. The interbank exchange rate then stood at Tk87.5 per dollar, up from Tk86.70 a day before.
The dollar exchange rate in the kerb market crossed Tk100 for the first time on May 17. Money changers in the capital sold each dollar for Tk102, up from Tk98 a day previously.
The country’s foreign exchange reserves are declining day by day due to growing import payments and a downward trend in remittance earnings. Remittance was down by 16.25% to $17.3 billion in 10 months of this fiscal year, the central bank data showed.
Forex reserves fell to $41.92 billion on May 11 after paying the Asian Clearing Union $2.24 billion, as per the central bank data. There was $46 billion in reserves on February 28 this year.
However, the country's foreign exchange reserves on Sunday increased to $42.30 billion, as it was $41.92 billion on May 10, which is enough to cover imports for six months.