Greenback gains against BDT
Sunday, 24 June 2007
Sarwar Zahan
US dollar recovered some strength against Bangladesh taka (BDT) last week because of stable demand for the greenback. The exchange rate of the greenback ranged between Tk 68.80 and Tk 69.05 against the previous week's range between Tk 68.70 and Tk 69.00 in the interbank foreign exchange market, fund manager sources said.
The steady import payments resulted in an almost constant demand for the greenback. The supply of the foreign currency was nourished by higher inflow of remittance and export proceeds, they said.
Dollar was, however, stable with downward bias in public deals as well as in the local informal market. Cash dollar in public deals was exchanged at rates between Tk 67.05 and Tk 69.90 last week against the previous week's range between Tk 67.10 and Tk 69.90, funds managers said.
The greenback slightly gained ground in the informal market and it was traded at rates between Tk 70.70 and Tk 71.00 in the local informal market against the previous week's range between Tk 70.50 and Tk 71.00. The brokers used to buy dollar mainly at rates between Tk 70.70 and Tk 70.80 and sold it between Tk 70.90 and 71.00, money dealers said.
The dealer banks were less interested in making swap deals against customer requirements to fund their import payment obligations instantly. The lower use of swap deals was taken as a positive market behaviour, they added.
The total spot transactions in greenback during the week stood at around 68.45 million dollars against the previous week's about 77 million dollars in all sessions. The supply of the greenback was adequate to comfortably meet the demand in the market, they added.
The central bank strengthened its monitoring and supervision activities to ensure discipline in the foreign exchange market. It helped check unnecessary transactions in dollar by the dealer banks effectively, sources said.
The central bank also held regular auctions of the reverse repurchase agreement (repo) to withdraw cash from the market. The aim was to keep the call money rate at a reasonable level and discourage excess buying of dollar, they said.
The commercial banks offered high exchange rates for the foreign currencies to encourage Bangladeshi expatriates for sending 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 varied between Rs 40.47 and Rs 40.82. Pakistani rupee ranged between Rs 60.57 and Rs 60.82.
The exchange rate of dollar against Malaysian ringgit varied between 3.4280 ringgit and 3.4600 ringgit and against Thai baht between 32.30 bahts and 34.63 bahts.
In the international market, dollar was traded between 123.44 yen and 123.65 yen against the previous week's range between 121.68 yen and 122.70 yen. Euro was traded between 1.3389 dollar and 1.3430 dollar against the previous week's range between 1.3254 dollar and 1.3375 dollar.
US dollar recovered some strength against Bangladesh taka (BDT) last week because of stable demand for the greenback. The exchange rate of the greenback ranged between Tk 68.80 and Tk 69.05 against the previous week's range between Tk 68.70 and Tk 69.00 in the interbank foreign exchange market, fund manager sources said.
The steady import payments resulted in an almost constant demand for the greenback. The supply of the foreign currency was nourished by higher inflow of remittance and export proceeds, they said.
Dollar was, however, stable with downward bias in public deals as well as in the local informal market. Cash dollar in public deals was exchanged at rates between Tk 67.05 and Tk 69.90 last week against the previous week's range between Tk 67.10 and Tk 69.90, funds managers said.
The greenback slightly gained ground in the informal market and it was traded at rates between Tk 70.70 and Tk 71.00 in the local informal market against the previous week's range between Tk 70.50 and Tk 71.00. The brokers used to buy dollar mainly at rates between Tk 70.70 and Tk 70.80 and sold it between Tk 70.90 and 71.00, money dealers said.
The dealer banks were less interested in making swap deals against customer requirements to fund their import payment obligations instantly. The lower use of swap deals was taken as a positive market behaviour, they added.
The total spot transactions in greenback during the week stood at around 68.45 million dollars against the previous week's about 77 million dollars in all sessions. The supply of the greenback was adequate to comfortably meet the demand in the market, they added.
The central bank strengthened its monitoring and supervision activities to ensure discipline in the foreign exchange market. It helped check unnecessary transactions in dollar by the dealer banks effectively, sources said.
The central bank also held regular auctions of the reverse repurchase agreement (repo) to withdraw cash from the market. The aim was to keep the call money rate at a reasonable level and discourage excess buying of dollar, they said.
The commercial banks offered high exchange rates for the foreign currencies to encourage Bangladeshi expatriates for sending 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 varied between Rs 40.47 and Rs 40.82. Pakistani rupee ranged between Rs 60.57 and Rs 60.82.
The exchange rate of dollar against Malaysian ringgit varied between 3.4280 ringgit and 3.4600 ringgit and against Thai baht between 32.30 bahts and 34.63 bahts.
In the international market, dollar was traded between 123.44 yen and 123.65 yen against the previous week's range between 121.68 yen and 122.70 yen. Euro was traded between 1.3389 dollar and 1.3430 dollar against the previous week's range between 1.3254 dollar and 1.3375 dollar.