Greenback loses ground against Bangladesh Taka
Sunday, 8 July 2007
Sarwar Zahan
US dollar lost ground against Bangladesh taka (BDT) last week due to lower demand for the greenback. The exchange rate of the greenback ranged between Tk 68.70 and Tk 68.85 against the previous week's range between Tk 68.80 and Tk 69.00 in the interbank foreign exchange market, fund manager sources said.
The demand for the greenback was lower because of decline in import payments. The supply of the foreign currency was, on the other hand, high with increased inflow of remittance and export proceeds. It helped the taka to regain part of its earlier losses, they said.
Dollar, however, remained stable 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 repeating the previous week's range, funds managers said.
The greenback was also steady in the informal market and it was traded at rates between Tk 70.50 and Tk 71.00 in the local informal market against the previous week's range between Tk 70.60 and Tk 71.00. The brokers used to buy dollar mainly at rates between Tk 70.50 and Tk 70.80 and sold it between Tk 70.90 and 71.00, money dealers said.
The dealer banks were cautious to make 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 central bank strengthened its monitoring and supervision activities to maintain discipline in the foreign exchange market. The measures were applied to check unnecessary transactions in dollar by the dealer banks, sources said.
The central bank used its monetary tools holding auctions of the reverse repurchase agreement (repo), Bangladesh Bank bills and Bangladesh Government treasury bills to withdraw cash from the market. The measure was taken to keep the call money rate at reasonable level and discourage excess buying of dollar, they said.
The commercial banks offered high exchange rates for foreign currencies to encourage the 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. The exchange rate of dollar against Indian rupee varied between Rs 40.42 and Rs 40.62. Pakistani rupee ranged between Rs 60.20 and Rs 60.58.
The exchange rate of dollar against Malaysian ringgit varied between 3.4375 yen ringgit and 3.4550 ringgit and against Thai baht between 31.00 bahts and 34.37 bahts.
In the international market, dollar was traded between 122.38 yen and 122.59 against the previous week's range between 122.36 yen and 123.69 yen. Euro was traded between 1.3596 dollar and 1.3644 dollar against the previous week's range between 1.3440 dollar and 1.3475 dollar.
US dollar lost ground against Bangladesh taka (BDT) last week due to lower demand for the greenback. The exchange rate of the greenback ranged between Tk 68.70 and Tk 68.85 against the previous week's range between Tk 68.80 and Tk 69.00 in the interbank foreign exchange market, fund manager sources said.
The demand for the greenback was lower because of decline in import payments. The supply of the foreign currency was, on the other hand, high with increased inflow of remittance and export proceeds. It helped the taka to regain part of its earlier losses, they said.
Dollar, however, remained stable 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 repeating the previous week's range, funds managers said.
The greenback was also steady in the informal market and it was traded at rates between Tk 70.50 and Tk 71.00 in the local informal market against the previous week's range between Tk 70.60 and Tk 71.00. The brokers used to buy dollar mainly at rates between Tk 70.50 and Tk 70.80 and sold it between Tk 70.90 and 71.00, money dealers said.
The dealer banks were cautious to make 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 central bank strengthened its monitoring and supervision activities to maintain discipline in the foreign exchange market. The measures were applied to check unnecessary transactions in dollar by the dealer banks, sources said.
The central bank used its monetary tools holding auctions of the reverse repurchase agreement (repo), Bangladesh Bank bills and Bangladesh Government treasury bills to withdraw cash from the market. The measure was taken to keep the call money rate at reasonable level and discourage excess buying of dollar, they said.
The commercial banks offered high exchange rates for foreign currencies to encourage the 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. The exchange rate of dollar against Indian rupee varied between Rs 40.42 and Rs 40.62. Pakistani rupee ranged between Rs 60.20 and Rs 60.58.
The exchange rate of dollar against Malaysian ringgit varied between 3.4375 yen ringgit and 3.4550 ringgit and against Thai baht between 31.00 bahts and 34.37 bahts.
In the international market, dollar was traded between 122.38 yen and 122.59 against the previous week's range between 122.36 yen and 123.69 yen. Euro was traded between 1.3596 dollar and 1.3644 dollar against the previous week's range between 1.3440 dollar and 1.3475 dollar.