Jumbangla Desk: In recent years, the rupee has been depreciating against the US dollar. As a result, there is instability in the economic situation of the country.

According to experts, there are several reasons for the decline in the value of money. The current economic condition of the country and inflation is one of them.

According to the data of Bangladesh Bank, in July 2023, one US dollar was sold at Tk 109, which currently stands at Tk 120. That is, in a little more than a year, the price per dollar has increased by 11 taka.

Reasons for rupee depreciating against dollar-

1. economic status

The state of the country's economy affects the value of the currency. If a country's economy is weak or unstable, the country's currency may depreciate.

For example, currently the economy of Bangladesh is in a weak state, which is why the value of taka is lower than the dollar.

2. Inflation

When inflation in a country increases, the purchasing power of the currency decreases. As a result, the taka became less valuable than the dollar.

3. International trade

If a country's imports are high and exports are low, demand for that country's currency falls. This devalues ​​the rupee against the dollar.

4. Foreign investment

If foreign investors are not interested in investing in a country, the country's currency may depreciate. Economic security and stability of the country is important here.

5. Central Bank Policy

Central bank policies also affect currency values. If the central bank lowers interest rates or prints more money, the value of the currency may fall.

Several factors are at work behind the depreciation of the rupee against the dollar. A country's economic condition, political stability and international trade conditions play a role in currency depreciation.