The price of the Indian Rupee is falling against the US Dollar; on the other hand, the Bangladesh Taka is in a better position. At present, one US Dollar is getting Rs. 72.28 while Rupee has also devalued against the Taka.
Currently, Tk. 100 is getting Rs. 86. Bangladesh Tk. 1.14 is now getting Rs. 1, which means that only 0.14 Taka is the difference and if Taka can overcome this then the rates of two currencies will be same.
A research institute called Wallet Invest has said that Rupee may fall further against the Taka.
Economists say that falling Rupee rate against the Taka may benefit medical tourists from Bangladesh to India but this will not have favourable impact on foreign trade.
After liberation in 1971, the Taka and Rupee were similar in value but then, the rate of Taka began to fall steadily. From beginning of August this year, Indian Rupee started to decline with Rupee rate falling by 15 per cent in the last two months.
Economists are saying that since Taka has become strong against the Rupee, Bangladesh is falling behind in export trade.
Senior research fellow of Bangladesh Institute of Development Studies, BIDS, Dr. Nazneen Ahmed, said: “While a strong Taka will benefit in importing goods from India, Bangladesh will fall behind in international export trade.”
Researcher for Centre for Policy Dialogue, CPD, Khondokar Golam Moazzem, said: “If the price of Rupee falls against the Taka then Bangladesh will face loss in the long run; if Rupee falls against the Dollar, demand for Indian goods in the international market will rise; Indian goods will be cheap while Bangladeshi products will be comparatively expensive.”
The escalation of US-China trade war impacts several countries and this has spiked the demand for Dollar and a fall in the price of Rupee.
The fall in share market index in India has also had an impact on the falling rate of the Rupee. Bangladesh imports more from India than she exports to her and the trade is worth around $8 billion.
Of this, exports to India from Bangladesh was $1 billion while goods worth $7 billion were imported from India. In addition, plenty of people are going to India for medical treatment, education and tourism.