BB keeps intervening in forex market, sells US dollars to banks
Friday, 26 November 2010
FE Report
The Bangladesh Bank (BB) has continued intervention in the foreign exchange market through selling the US dollar to commercial banks aiming to keep the market stable, officials said.
"We've sold US$ 7.0 million more at market rate to a private commercial bank directly Thursday to meet the growing demand for US dollars," a senior official at the central bank told the FE.
The US dollar was quoted at Tk 70.3500 in the inter-bank foreign exchange market on the day against Tk 70.3400-Tk 70.3500 of the previous working day.
"The central bank may continue such intervention to keep the forex market stable," the BB official said, adding that the central bank is monitoring the country's overall foreign exchange market situation closely.
On Wednesday, the BB similarly sold $40 million to three commercial banks directly on the same ground.
On September 28 this year, the central bank started intervention in the foreign exchange market through selling US dollars to commercial banks directly.
As part of the intervention, the BB has so far sold $318 million to commercial banks to meet the growing demand for the greenback.
Meanwhile, the call money rate fell Thursday drastically, fifth working day after the Eid-ul-Azha vacation, as the central bank injected a substantial amount of fresh fund into the market, officials said.
The inter-bank call rate ranged between 5.50 per cent and 12 per cent on the day against 5.00-25 per cent of the previous working day. However, most of the deals were settled at rates varying between 8.0 per cent and 12 per cent, treasury officials said.
"The call money rate has dropped substantially as the central bank continues its market intervention to keep the rate stable," a senior treasury official of a commercial bank told the FE.
Bangladesh Bank (BB) injected fresh funds worth Tk 44.1890 billion at 5.50 per cent Thursday through auction of repurchase agreement (repo) and special liquidity support to the primary dealers (PDs).
The central bank earlier selected 15 PDs - 12 banks and three NBFIs - to handle government securities in the secondary market.
On Wednesday, the BB provided funds worth Tk 54.4033 billion, using same mechanisms, central bank officials said.
The Bangladesh Bank (BB) has continued intervention in the foreign exchange market through selling the US dollar to commercial banks aiming to keep the market stable, officials said.
"We've sold US$ 7.0 million more at market rate to a private commercial bank directly Thursday to meet the growing demand for US dollars," a senior official at the central bank told the FE.
The US dollar was quoted at Tk 70.3500 in the inter-bank foreign exchange market on the day against Tk 70.3400-Tk 70.3500 of the previous working day.
"The central bank may continue such intervention to keep the forex market stable," the BB official said, adding that the central bank is monitoring the country's overall foreign exchange market situation closely.
On Wednesday, the BB similarly sold $40 million to three commercial banks directly on the same ground.
On September 28 this year, the central bank started intervention in the foreign exchange market through selling US dollars to commercial banks directly.
As part of the intervention, the BB has so far sold $318 million to commercial banks to meet the growing demand for the greenback.
Meanwhile, the call money rate fell Thursday drastically, fifth working day after the Eid-ul-Azha vacation, as the central bank injected a substantial amount of fresh fund into the market, officials said.
The inter-bank call rate ranged between 5.50 per cent and 12 per cent on the day against 5.00-25 per cent of the previous working day. However, most of the deals were settled at rates varying between 8.0 per cent and 12 per cent, treasury officials said.
"The call money rate has dropped substantially as the central bank continues its market intervention to keep the rate stable," a senior treasury official of a commercial bank told the FE.
Bangladesh Bank (BB) injected fresh funds worth Tk 44.1890 billion at 5.50 per cent Thursday through auction of repurchase agreement (repo) and special liquidity support to the primary dealers (PDs).
The central bank earlier selected 15 PDs - 12 banks and three NBFIs - to handle government securities in the secondary market.
On Wednesday, the BB provided funds worth Tk 54.4033 billion, using same mechanisms, central bank officials said.