Bangladesh currency surge worries exporters

BANGLADESH: Currency surge worries apparel exporters

By Siddique Islam | 25 January 2013

A strengthening of the Bangladesh taka (BDT) against the US dollar is worrying the country's textile and apparel sectors, which say their exports have been badly affected.

"The target of reaching $28bn export earnings in the fiscal year 2012-13 will not be achieved if the BDT continues to appreciate against the US currency," Abdus Salam Murshedy, president of the Exporters Association of Bangladesh, told just-style.

Murshedy, also former president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said any further appreciation will seriously affect the industry's competitiveness in the near future.

"We've already urged the government as well as Bangladesh Bank (BB), the country's central bank, to take effective measures to check the BDT appreciation against the dollar to sustain export growth in the textile and clothing industry," he noted.

The taka has risen as a result of lower import payments, higher growth of inward remittance, and rising foreign direct investment (FDI) - appreciating by more than 6% or BDT5.155 over the last year.

Sectors: Apparel, Manufacturing, Sourcing