Dollar demand falls in forex market
Thursday, 15 November 2007
FE Report
Demand for the US dollar has gradually declined in the inter-bank foreign exchange market following intervention by the central bank through sale of the greenback in the market.
Besides, the higher inflow of inward remittances ahead of the Eid-ul-Azha festival is also contributing to improve the supply position of the greenback in the foreign exchange market, treasury officials said.
The central bank also sold US$6.50 million at prevailing market rate to four commercial banks Wednesday to meet the growing demand for the greenback, official sources said.
"The demand of US dollar has gradually declined so the sale volume of the greenback has dropped," a BB senior official told the FE Wednesday.
He also said the central bank is providing foreign exchange support to the commercial banks after examining their requirements.
The US dollar was quoted at Tk 68.61 in the inter-bank foreign exchange market on the day unchanged from the previous working day, market sources said.
The BB started intervening in the market since a fortnight back aiming to keep the inter-bank foreign exchange market stable.
The central bank has so far sold $127.50 million to the commercial banks as part of its market intervention.
The inter-bank call money rate confined to previous day's level maintaining stable face despite withdrawal of cash through reverse repurchase agreement (repo), fund managers said.
The market was active and the rate in its extreme range moved between 6.50 per cent and 10.50 per cent repeating the previous day's range.
In most deals, the rates moved between 6.50 per cent and 6.65 per cent against the previous day's range of between 6.50 per cent and 6.60 per cent, they said.
Some non-banking financial institutions borrowed cash at high rates from the inter-bank market in stray deals to meet urgent demands of their clients forcing the call rate to move above normal trend, fund managers said.
Demand for the US dollar has gradually declined in the inter-bank foreign exchange market following intervention by the central bank through sale of the greenback in the market.
Besides, the higher inflow of inward remittances ahead of the Eid-ul-Azha festival is also contributing to improve the supply position of the greenback in the foreign exchange market, treasury officials said.
The central bank also sold US$6.50 million at prevailing market rate to four commercial banks Wednesday to meet the growing demand for the greenback, official sources said.
"The demand of US dollar has gradually declined so the sale volume of the greenback has dropped," a BB senior official told the FE Wednesday.
He also said the central bank is providing foreign exchange support to the commercial banks after examining their requirements.
The US dollar was quoted at Tk 68.61 in the inter-bank foreign exchange market on the day unchanged from the previous working day, market sources said.
The BB started intervening in the market since a fortnight back aiming to keep the inter-bank foreign exchange market stable.
The central bank has so far sold $127.50 million to the commercial banks as part of its market intervention.
The inter-bank call money rate confined to previous day's level maintaining stable face despite withdrawal of cash through reverse repurchase agreement (repo), fund managers said.
The market was active and the rate in its extreme range moved between 6.50 per cent and 10.50 per cent repeating the previous day's range.
In most deals, the rates moved between 6.50 per cent and 6.65 per cent against the previous day's range of between 6.50 per cent and 6.60 per cent, they said.
Some non-banking financial institutions borrowed cash at high rates from the inter-bank market in stray deals to meet urgent demands of their clients forcing the call rate to move above normal trend, fund managers said.