Forex market volatility eases

The volatility on the forex market declined a bit because of strict monitoring by the central bank as commercial banks are now selling the US dollar within the official rate of Tk 116.
Talking to the FE, several top executives of private commercial banks said Bangladesh Bank (BB), the central bank of the country, has instructed the banks not to buy the greenback beyond the official rate.
Seeking anonymity, the managing director of a private commercial bank said many banks in recent times purchased dollar much higher than that of the official rate from the global exchange houses, which triggers the volatility in the market.
As the central bank very recently issued instruction not to violate the official rate to avert strict action, the banks are not buying the mighty American currency more than Tk 116 even after incurring losses.
"So, the exchange rate of dollar in banks is declining. I think no bank will dare to breach the official rate at the moment," he added.
BB spokesperson Md Mezbaul Haque said they have strictly instructed both banks and exchange houses not to violate the official rate to avert actions. "And we're monitoring the market closely," he added.
However, the exchange rate of US dollar remains static at Tk 128 a dollar in the kerb market although the BB sources said it is Tk 18.50 a dollar.
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