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BDT rises notably against US$ for importers

BB sells $38m to banks

Siddique Islam | September 28, 2017 00:00:00

The exchange rate of Bangladesh Taka (BDT) appreciated significantly against the US dollar on Wednesday for importers, as the central bank sold US$ 38 million to the banks, market operators said.

The local currency appreciated by 0.23 per cent or 19 paisa each against the US currency, as the average bill for collection (BC) rate of the greenback came down to Tk 81.8963 on the day from Tk 82.0892 on the previous working day, according to Bangladesh Foreign Exchange Dealers Association (BAFEDA).

The substantial appreciation of BDT took place one day after it witnessed a depreciation of 30 paisa on Tuesday, they added.

In case of receiving inward funds, BDT also appreciated slightly against the greenback on the same day.

The banks quoted one US dollar at Tk 80.7690 on the day against Tk 80.7721 of the previous working day to the remitters for telegraphic transfer (TT), the BAFEDA data showed.

Such appreciation will make imports easier, while the remitters and exporters are expected to be benefitted slightly, according to market insiders.

They also said the stability in the country's foreign exchange market will continue, if the Bangladesh Bank (BB) provides such support to the banks in line with the market requirement.

However, the exchange rate of BDT remained unchanged against the US dollar in the inter-bank forex market on Wednesday.

The US dollar was quoted at Tk 80.80 each, unchanged from the previous level, according to the market operators.

However, BB sold the greenback to three commercial banks directly to meet the growing demand for the greenback in the market.

"We've sold the US dollars to the banks at market rate on Wednesday to settle their import payment obligations," a BB senior official told the FE.

He also said the central bank may continue providing such support to the banks in line with the market requirement.

BB recently resumed providing the foreign exchange support through selling of the US dollar to the banks directly to keep the market stable.

As part of the move, the central bank sold $20 million to the banks in August, according to the central bank's confidential report.

BB sold a total of $130 million since July 01 of this fiscal year, 2017-18, to the commercial banks as part of its ongoing support.

The central bank had sold the US dollar to the banks for making their import payments against petroleum products and food grains, according to the BB officials.

The demand for the US currency is increasing gradually, mainly due to higher import payments pressure, particularly of capital machinery, petroleum products, consumer items including food grains, and scrap vessels, the market operators added.

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