BB purchases $21.50m more from six banks
FE Report | Friday, 6 March 2009
The central bank has continued to purchase US dollar from the commercial banks aiming to keep the inter-bank foreign exchange market stable, officials said.
As part of the move, the Bangladesh Bank (BB) bought US$21.50 million more at market rate from six commercial banks Thursday.
The US dollar was quoted at Tk 68.93 in the inter-bank foreign exchange market on the day against Tk 68.92 -Tk 68.96 of the previous working day.
"We've purchased the US dollar from the commercial banks to help the banks comply with the net open position (NOP) rules for holding foreign exchange properly," a BB senior official told the FE.
He also said the demand of greenback has declined slightly as falling trend of commodity prices including fuel oils in the global market.
The central bank continues its intervention in the inter-bank foreign exchange market through selling and buying of the US currency directly and providing overdraft (OD) facilities to the banks aiming to keep the market stable.
On Wednesday last, the BB similarly purchased $17.00 million from five private commercial banks on the same ground, the central bank officials added.
The central bank of Bangladesh started the intervention in the market by buying the US currency directly from the commercial banks on January 15 last to keep the market steady.
Since then, the BB has bought $242.70 million from commercial banks as part of its intervention in the market, they confirmed.
Meanwhile, the foreign exchange flow has increased in the market because of a downward trend in opening letters of credit (LCs) against imports recently, market operators said.
The country's overall LC opening for imports dropped by 16.62 per cent in February last compared to the corresponding period of the previous year.
Import LCs worth $1.698 billion were opened during February against $2.038 billion of the corresponding period of the previous year, the BB's data showed.
As part of the move, the Bangladesh Bank (BB) bought US$21.50 million more at market rate from six commercial banks Thursday.
The US dollar was quoted at Tk 68.93 in the inter-bank foreign exchange market on the day against Tk 68.92 -Tk 68.96 of the previous working day.
"We've purchased the US dollar from the commercial banks to help the banks comply with the net open position (NOP) rules for holding foreign exchange properly," a BB senior official told the FE.
He also said the demand of greenback has declined slightly as falling trend of commodity prices including fuel oils in the global market.
The central bank continues its intervention in the inter-bank foreign exchange market through selling and buying of the US currency directly and providing overdraft (OD) facilities to the banks aiming to keep the market stable.
On Wednesday last, the BB similarly purchased $17.00 million from five private commercial banks on the same ground, the central bank officials added.
The central bank of Bangladesh started the intervention in the market by buying the US currency directly from the commercial banks on January 15 last to keep the market steady.
Since then, the BB has bought $242.70 million from commercial banks as part of its intervention in the market, they confirmed.
Meanwhile, the foreign exchange flow has increased in the market because of a downward trend in opening letters of credit (LCs) against imports recently, market operators said.
The country's overall LC opening for imports dropped by 16.62 per cent in February last compared to the corresponding period of the previous year.
Import LCs worth $1.698 billion were opened during February against $2.038 billion of the corresponding period of the previous year, the BB's data showed.