Greenback falls against BDT
Sunday, 18 November 2007
Sarwar Zahan
US dollar fell against Bangladesh taka (BDT) in the inter-bank foreign exchange market last week because of lower demand for the greenback and selling of the foreign currency to selected dealer banks by the central bank, fund managers said.
The exchange rate of the greenback mainly fluctuated between Tk 68.60 and Tk 68.61 against the previous week's range between Tk 68.60 and Tk 68.64 in the interbank foreign exchange market, fund manager sources said.
The steady flow of inward remittance and export proceeds helped maintain adequate supply of dollar in the market. It forced dollar to surrender some of its earlier gains to taka in the interbank market, they said.
The greenback, however, appeared stronger in public deals. Cash dollar in public deals was exchanged at rates between Tk 67.60 and Tk 70.75 against the previous week's range between Tk 67.60 and Tk 70.10, funds managers said.
In the informal market, the greenback weakened and it was traded at rates ranging between Tk 69.60 and Tk 69.90 in the local informal market against the previous week's range between Tk 70.10 and Tk 70.40. The brokers used to buy dollar mainly at rates between Tk 69.60 and Tk 69.70 and sold it between Tk 69.80 and Tk 69.90, money dealers said.
The spot transactions in greenback were high and the total transaction in three sessions was recorded at around at $29 million against the previous week's $41 million. The steady flow of dollar in the market ensured reasonable balance between the demand and the supply, they added.
The dealer banks were shy in making swap deals against customer requirements to fund their import payment obligations instantly. The lower use of swap deals was taken as an encouraging market behaviour, they added.
The central bank was active in monitoring and supervision of the activities of the dealer banks to check unnecessary transactions in dollar by the dealer banks and ensure discipline in the foreign exchange market, sources said.
It also repeated withdrawal of cash through auctions of reverse repurchase agreement (repo), treasury bills, Bangladesh Bank bills and Bangladesh Government treasury (BGT) bonds to keep the call money rate at a higher-than-expected level by discouraging unnecessary buying of dollar, they said.
The commercial banks encouraged Bangladeshi expatriates offering high exchange rates to send their money through the banking channel, fund managers said.
In the regional market, most of the currencies were steady against dollar. The exchange rate of Indian rupee against taka ranged between Tk 1.56 and Tk 1.71.
The exchange rate of dollar against Indian rupee moved between Rs 39.05 and Rs 39.24 and Pakistani rupee between Rs 60.67 and Rs 61.25.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.3160 ringgit and 3.3625 ringgit, and that against the Thai currency between 31.50 baht and 33.89 baht.
In the international market, dollar was traded between 109.33 yen and 110.98 against the previous week's range between 113.32 yen and 114.79 yen. Euro was traded between 1.4563 dollar and 1.4686 dollar against the previous week's range between 1.4467 dollar and 1.4655 dollar.
US dollar fell against Bangladesh taka (BDT) in the inter-bank foreign exchange market last week because of lower demand for the greenback and selling of the foreign currency to selected dealer banks by the central bank, fund managers said.
The exchange rate of the greenback mainly fluctuated between Tk 68.60 and Tk 68.61 against the previous week's range between Tk 68.60 and Tk 68.64 in the interbank foreign exchange market, fund manager sources said.
The steady flow of inward remittance and export proceeds helped maintain adequate supply of dollar in the market. It forced dollar to surrender some of its earlier gains to taka in the interbank market, they said.
The greenback, however, appeared stronger in public deals. Cash dollar in public deals was exchanged at rates between Tk 67.60 and Tk 70.75 against the previous week's range between Tk 67.60 and Tk 70.10, funds managers said.
In the informal market, the greenback weakened and it was traded at rates ranging between Tk 69.60 and Tk 69.90 in the local informal market against the previous week's range between Tk 70.10 and Tk 70.40. The brokers used to buy dollar mainly at rates between Tk 69.60 and Tk 69.70 and sold it between Tk 69.80 and Tk 69.90, money dealers said.
The spot transactions in greenback were high and the total transaction in three sessions was recorded at around at $29 million against the previous week's $41 million. The steady flow of dollar in the market ensured reasonable balance between the demand and the supply, they added.
The dealer banks were shy in making swap deals against customer requirements to fund their import payment obligations instantly. The lower use of swap deals was taken as an encouraging market behaviour, they added.
The central bank was active in monitoring and supervision of the activities of the dealer banks to check unnecessary transactions in dollar by the dealer banks and ensure discipline in the foreign exchange market, sources said.
It also repeated withdrawal of cash through auctions of reverse repurchase agreement (repo), treasury bills, Bangladesh Bank bills and Bangladesh Government treasury (BGT) bonds to keep the call money rate at a higher-than-expected level by discouraging unnecessary buying of dollar, they said.
The commercial banks encouraged Bangladeshi expatriates offering high exchange rates to send their money through the banking channel, fund managers said.
In the regional market, most of the currencies were steady against dollar. The exchange rate of Indian rupee against taka ranged between Tk 1.56 and Tk 1.71.
The exchange rate of dollar against Indian rupee moved between Rs 39.05 and Rs 39.24 and Pakistani rupee between Rs 60.67 and Rs 61.25.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.3160 ringgit and 3.3625 ringgit, and that against the Thai currency between 31.50 baht and 33.89 baht.
In the international market, dollar was traded between 109.33 yen and 110.98 against the previous week's range between 113.32 yen and 114.79 yen. Euro was traded between 1.4563 dollar and 1.4686 dollar against the previous week's range between 1.4467 dollar and 1.4655 dollar.