A sharp fall in the euro, the official currency of 19 EU-member countries, is affecting Bangladesh’s exports, mainly of apparels. This has added to the countries woes at a time when trade is also struggling hard against damaging domestic problems stemming from blockades and strikes.

The 27-member eurozone remains the largest export destination for Bangladesh and the euro has fallen to a four-year low in January through erosion of its value by 12 per cent. On the other hand, in view of the downturn, some developing countries considered rivals to Bangladesh in the export market have depreciated their currencies to tap the benefits from falling euro.

Exports from Vietnam and Cambodia to the euro zone grew 28.9 per cent and 23.9 per cent respectively from July to September. Exports from Pakistan that enjoys a GSP plus status with the European Union, surged 30 per cent during the period under review.

Bangladesh’s total garment exports to the EU rose only 5.1 per cent during the July to September period. The usual growth in the market share used to be double-digits earlier. The decline in euro is affecting the garments sector in terms of price cuts as buyers usually want to lower the prices of imported goods to remain competitive in their respective countries.