Dhaka, Aug. 20 -- Local-currency taka again gets overvalued against the US dollar, as per July ratings, after remaining undervalued in two consecutive months, stoking concerns about Bangladesh's trade competitiveness on the volatile global market.

The real effective exchange rate (REER), a key indicator for gauging foreign-exchange-market equilibrium, stood at 101.14 in July 2025. It was 98.61 in June and 99.27 in May, according to Bangladesh Bank data released Tuesday.

Based on REER, the BDT was overvalued by Tk 1.71 against the dollar in the month under review. The exchange rate should have been 121.13 but it traded at Tk 122.84 during the period.

In economics, a REER reading above 100 suggests that a local currency is overvalued aga...