Greenback fluctuates against BDT
Sunday, 19 August 2007
Sarwar Zahan
US dollar fluctuated against Bangladesh taka (BDT) last week in a steady market. The rates rose in the middle of the week, but subdued in the end.
The exchange rate of the greenback moved between Tk 68.50 and Tk 68.80 against the previous week's range between Tk 68.52 and Tk 68.60 in the interbank foreign exchange market, fund manager sources said.
The market felt a lower demand for dollar due to moderate import payments. The inflow of remittance and export proceeds, however, ensured sufficient flow of dollar in the market.
The greenback, however, was stronger in public deals as well as in the local informal market. Cash dollar in public deals was exchanged at rates between Tk 67.50 and Tk 69.90 against the previous week's range between Tk 67.00 and Tk 69.90, fund managers said.
In the informal market, the greenback was traded at rates ranging between Tk 71.10 and Tk 72.60 in the local informal market against the previous week's range between Tk 70.760 and Tk 71.00. The brokers used to buy dollar mainly at rates between Tk 71.10 and Tk 70.20 and sold it between Tk 72.40 and 72.60, money dealers said.
The total spot transactions in greenback during the week stood at around 57 million dollars against the previous week's about 78 million dollars. The market experienced sufficient supply of the greenback that ensured balance between the demand and the supply in the market, they added.
The dealer banks played active roles 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 strengthened its monitoring and supervision activities to check unnecessary transactions in dollar by the dealer banks and to ensure discipline in the foreign exchange market, sources said.
The central bank drained out cash through auctions of reverse repurchase agreement (repo), treasury bills and Bangladesh Bank bills to maintain pressure on liquidity and discourage buying of dollar by keeping the call money rate at a reasonable level. The market, however, reflected its stable behaviour, they said.
The commercial banks used to offer high exchange rates to encourage Bangladeshi expatriates to send their money through the banking channel, fund managers said.
In the regional market, most of the currencies appeared steady against dollar. The exchange rate of Indian rupee against taka ranged between Tk 1.56 and Tk 1.71. In the regional market, the exchange rate of dollar against Indian rupee moved between Rs 40.45 and Rs 41.19 and Pakistani rupee between Rs 60.40 and Rs 60.50.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.4740 ringgit and 3.5080 ringgit, and that against the Thai currency between 31.40 baht and 34.36 baht.
In the international market, dollar was traded between 114.54 yen and 118.46 yen against the previous week's range between 117.93 yen and 119.31 yen. Euro was traded between 1.3410 dollar and 1.3664 dollar against the previous week's range between 1.3692 dollar and 1.3815 dollar.
US dollar fluctuated against Bangladesh taka (BDT) last week in a steady market. The rates rose in the middle of the week, but subdued in the end.
The exchange rate of the greenback moved between Tk 68.50 and Tk 68.80 against the previous week's range between Tk 68.52 and Tk 68.60 in the interbank foreign exchange market, fund manager sources said.
The market felt a lower demand for dollar due to moderate import payments. The inflow of remittance and export proceeds, however, ensured sufficient flow of dollar in the market.
The greenback, however, was stronger in public deals as well as in the local informal market. Cash dollar in public deals was exchanged at rates between Tk 67.50 and Tk 69.90 against the previous week's range between Tk 67.00 and Tk 69.90, fund managers said.
In the informal market, the greenback was traded at rates ranging between Tk 71.10 and Tk 72.60 in the local informal market against the previous week's range between Tk 70.760 and Tk 71.00. The brokers used to buy dollar mainly at rates between Tk 71.10 and Tk 70.20 and sold it between Tk 72.40 and 72.60, money dealers said.
The total spot transactions in greenback during the week stood at around 57 million dollars against the previous week's about 78 million dollars. The market experienced sufficient supply of the greenback that ensured balance between the demand and the supply in the market, they added.
The dealer banks played active roles 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 strengthened its monitoring and supervision activities to check unnecessary transactions in dollar by the dealer banks and to ensure discipline in the foreign exchange market, sources said.
The central bank drained out cash through auctions of reverse repurchase agreement (repo), treasury bills and Bangladesh Bank bills to maintain pressure on liquidity and discourage buying of dollar by keeping the call money rate at a reasonable level. The market, however, reflected its stable behaviour, they said.
The commercial banks used to offer high exchange rates to encourage Bangladeshi expatriates to send their money through the banking channel, fund managers said.
In the regional market, most of the currencies appeared steady against dollar. The exchange rate of Indian rupee against taka ranged between Tk 1.56 and Tk 1.71. In the regional market, the exchange rate of dollar against Indian rupee moved between Rs 40.45 and Rs 41.19 and Pakistani rupee between Rs 60.40 and Rs 60.50.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.4740 ringgit and 3.5080 ringgit, and that against the Thai currency between 31.40 baht and 34.36 baht.
In the international market, dollar was traded between 114.54 yen and 118.46 yen against the previous week's range between 117.93 yen and 119.31 yen. Euro was traded between 1.3410 dollar and 1.3664 dollar against the previous week's range between 1.3692 dollar and 1.3815 dollar.