A banking source said the central bank will not intervene immediately. But if the upward trend continues for some time more, the Bangladesh Bank may intervene, the source added.

A foreign exchange dealer said depreciation of taka will shrink import while export and remittance inflow will be encouraged.

A banking source said the overall deficit in the balance of payment (BoP) at present has reached over $300 million. The central bank is apparently looking for decline in import as well as rise in export and remittance inflow.

International market opened on Monday and dollar prices rose by Tk 0.20 in case of opening LC on the very first day of the week. The upward trend continued with Tk 0.05 rise on Tuesday and Tk 0.20 on Wednesday and Thursday.

Prices of dollars increased too in the inter-bank foreign exchange market. Dollar was sold at Tk 66.95 yesterday, up by Tk 0.10 from the previous day.

Meanwhile, the government has conveyed its future plan concerning its foreign exchange management to the International Monetary Fund.

The government placed the 'Memorandum of Economic and Financial Policies' at the IMF board on February 3, where it said: "We are committed to the floating exchange rate regime and will confine interventions to countering disorderly conditions and building reserves to a more comfortable level."

The government also pointed out that it has ensured that no bank is given preferential treatment in the foreign exchange market. Besides, the taka/dollar rates offered by the NCBs and private dealers have now converged and BB's interventions in the foreign exchange market are now being conducted transparently by selling foreign exchange to the highest bidder rather than through the NCBs alone.

The memorandum also said, "In view of the considerable pressure in the foreign exchange market associated with oil financing needs, we expect the need for some further intervention at times, but this will be designed to smooth adjustment in the rate, not to prevent it."