Forex market may witness volatility weeks ahead

USD/BDT market was little volatile last week as well. Bangladesh received USD 1.33 billion as inward remittances in the month of March, which pushed the foreign exchange reserve to USD 23.12 billion in the beginning of the current month. As the market has started to have some import payments, it might see another volatile week ahead.
The average daily inter-bank USD/BDT transaction volume was about USD 38.46 million against USD 55.59 million of the preceding week.
Most of the banks kept their published foreign exchange rates unchanged throughout the week. The USD/BDT selling rates for importers of major Foreign and Private Banks was at 77.90-78.50, while USD buying rates from exporters were at 76.90-77.50. For non- commercial payments such as Tele Graphic Transfer as donations, wage earners' remittance, dollar drafts etc, the average T.T Buying rate was in the range of 76.90-77.50 while average T.T Selling rate was at 78.2029 on the last working day.
USD/BDT Swap market in this week was very much active. The daily average volume of swap transaction was around USD 85.00 million.
Local money market
This week, the local call money market was traded between a range of 7.25 per cent and 7.50 per cent. The Central Bank supported commercial banks through Reverse Repo and ALS windows. Bangladesh Bank accepted 364 days T/Bill. The cutoff yield of 91 days was 8.30 per cent. It also accepted 02 Years Govt. Treasury bond at yield of 8.40 per cent.
    — Commercial Bank of Ceylon PLC