Greenback continues gaining against BDT
Sunday, 2 November 2008
Sarwar Zahan
US dollar continued gaining against Bangladesh taka (BDT) in the inter-bank foreign exchange market last week due to increased demand for the greenback, on the one hand and supply constraint on the other, fund managers said.
The demand for dollar was high due to increased import payment obligations. Most banks showed interest in buying the greenback, they said.
In addition, banks were less interested in offering the greenback in the inter-bank market. Rather, they were active in keeping the dollar in reserves apprehending increased demand for the foreign currency in future. This led to buying power of taka, they added.
The inter-bank market was partially protected from pressure with support provided by the central bank to selected banks for maintaining stability in the market, they added.
The exchange rate of dollar moved between Tk 68.56 and Tk 68.65 in the inter-bank market against the previous week's range between Tk 68.52 and Tk 68.58.
The commercial banks avoided cross-currency transactions responding to the instruction of the central bank. They, however, remained active in making swap deals. The use of swap deals is usually considered a discouraging market behaviour, fund manager sources said.
Dollar was strong in public deals and it was mostly exchanged at rates varying between Tk 67.57 and Tk 70.90 against the previous week's range between Tk 67.47 and Tk 70.80, funds managers said.
In the informal market, the greenback gained and it was traded at rates varying between Tk 70.20 and Tk 70.60 in the local informal market against the previous week's range Tk 70.00 and Tk 70.60. The brokers used to buy dollar mainly at rates between Tk 70.20 and Tk 70.40 and sold it between Tk 70.50 and Tk 70.60, money dealers said.
The central bank conducted strong monitoring and supervision of the activities of the dealer banks for checking unnecessary transactions in dollar to ensure discipline in the foreign exchange market.
The commercial banks offered high exchange rates to encourage Bangladeshi expatriates for transferring their money through the banking channel, money dealers said.
In the regional market, most of the currencies fluctuated against dollar. The exchange rate of Indian rupee against taka ranged between Tk 1.3718 and Tk 1.3917 against the previous week's range between Tk 1.3711 and Tk 1.3986.
The exchange rate of dollar against Indian rupee moved between Rs 49.42 and Rs 50.05 against the previous week's range between Rs 48.91 and Rs 50.10 and Pakistani rupee between Rs 81.25 and Rs 84.75 against the previous week's range between Rs 81.00 and Rs 83.25.
US dollar continued gaining against Bangladesh taka (BDT) in the inter-bank foreign exchange market last week due to increased demand for the greenback, on the one hand and supply constraint on the other, fund managers said.
The demand for dollar was high due to increased import payment obligations. Most banks showed interest in buying the greenback, they said.
In addition, banks were less interested in offering the greenback in the inter-bank market. Rather, they were active in keeping the dollar in reserves apprehending increased demand for the foreign currency in future. This led to buying power of taka, they added.
The inter-bank market was partially protected from pressure with support provided by the central bank to selected banks for maintaining stability in the market, they added.
The exchange rate of dollar moved between Tk 68.56 and Tk 68.65 in the inter-bank market against the previous week's range between Tk 68.52 and Tk 68.58.
The commercial banks avoided cross-currency transactions responding to the instruction of the central bank. They, however, remained active in making swap deals. The use of swap deals is usually considered a discouraging market behaviour, fund manager sources said.
Dollar was strong in public deals and it was mostly exchanged at rates varying between Tk 67.57 and Tk 70.90 against the previous week's range between Tk 67.47 and Tk 70.80, funds managers said.
In the informal market, the greenback gained and it was traded at rates varying between Tk 70.20 and Tk 70.60 in the local informal market against the previous week's range Tk 70.00 and Tk 70.60. The brokers used to buy dollar mainly at rates between Tk 70.20 and Tk 70.40 and sold it between Tk 70.50 and Tk 70.60, money dealers said.
The central bank conducted strong monitoring and supervision of the activities of the dealer banks for checking unnecessary transactions in dollar to ensure discipline in the foreign exchange market.
The commercial banks offered high exchange rates to encourage Bangladeshi expatriates for transferring their money through the banking channel, money dealers said.
In the regional market, most of the currencies fluctuated against dollar. The exchange rate of Indian rupee against taka ranged between Tk 1.3718 and Tk 1.3917 against the previous week's range between Tk 1.3711 and Tk 1.3986.
The exchange rate of dollar against Indian rupee moved between Rs 49.42 and Rs 50.05 against the previous week's range between Rs 48.91 and Rs 50.10 and Pakistani rupee between Rs 81.25 and Rs 84.75 against the previous week's range between Rs 81.00 and Rs 83.25.