Greenback loses ground against BDT
Sunday, 22 July 2007
Sarwar Zahan
US dollar lost ground against Bangladesh taka (BDT) last week because of moderate demand for the greenback. The exchange rate of the greenback moved between Tk 68.60 and Tk 68.63 against the previous week's range between Tk 68.60 and Tk 68.67 in the interbank foreign exchange market, fund manager sources said.
The demand for the greenback dropped slightly due to lower import payments. On the other hand, higher inward remittance and inflow of export proceeds ensured comfortable supply of the foreign currency. It favoured taka to regain part of its earlier losses against the greenback, they said.
Dollar also fell significantly in public deals, but it was steady in the local informal market. Cash dollar in public deals was exchanged at rates between Tk 66.60 and Tk 69.90 against the previous week's range between Tk 66.80 and Tk 69.90, funds managers said.
In the informal market, the greenback was traded at rates ranging between Tk 70.60 and Tk 71.00 in the local informal market against the previous week's range between Tk 70.70 and Tk 71.00. The brokers used to buy dollar mainly at rates between Tk 70.60 and Tk 70.80 and sold it between Tk 70.80 and 71.00, money dealers said.
The total spot transactions in greenback during the week stood at around 57 million dollars against the previous week's about 68 million dollars. The supply of the greenback was sufficient to keep the demand-supply balance in the market, they added.
The dealer banks were cautious of 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 central bank strengthened its monitoring and supervision activities to check unnecessary transactions in dollar by the dealer banks and ensure discipline in the foreign exchange market, sources said.
The central bank withdrew cash using its monetary tools including reverse repurchase agreement (repo), treasury bills, Bangladesh Bank bills, Bangladesh Government treasury bills to keep the call money rate at a reasonable level and discourage excess buying of dollar, they said.
The commercial banks also encouraged the Bangladeshi expatriates offering high exchange rates for sending 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 40.26 and Rs 40.42. Pakistani rupee ranged between Rs 60.37 and Rs 60.60.
The exchange rate of dollar against Malaysian ringgit varied between 3.4410 ringgit and 3.4545 ringgit and against Thai baht between 30.44 bahts and 33.53 bahts.
In the international market, dollar was traded between 121.81 yen and 122.15 yen against the previous week's range between 121.87 yen and 123.52 yen. Euro was traded between 1.3783 dollar and 1.3819 dollar against the previous week's range between 1.3624 dollar and 1.3768 dollar.
US dollar lost ground against Bangladesh taka (BDT) last week because of moderate demand for the greenback. The exchange rate of the greenback moved between Tk 68.60 and Tk 68.63 against the previous week's range between Tk 68.60 and Tk 68.67 in the interbank foreign exchange market, fund manager sources said.
The demand for the greenback dropped slightly due to lower import payments. On the other hand, higher inward remittance and inflow of export proceeds ensured comfortable supply of the foreign currency. It favoured taka to regain part of its earlier losses against the greenback, they said.
Dollar also fell significantly in public deals, but it was steady in the local informal market. Cash dollar in public deals was exchanged at rates between Tk 66.60 and Tk 69.90 against the previous week's range between Tk 66.80 and Tk 69.90, funds managers said.
In the informal market, the greenback was traded at rates ranging between Tk 70.60 and Tk 71.00 in the local informal market against the previous week's range between Tk 70.70 and Tk 71.00. The brokers used to buy dollar mainly at rates between Tk 70.60 and Tk 70.80 and sold it between Tk 70.80 and 71.00, money dealers said.
The total spot transactions in greenback during the week stood at around 57 million dollars against the previous week's about 68 million dollars. The supply of the greenback was sufficient to keep the demand-supply balance in the market, they added.
The dealer banks were cautious of 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 central bank strengthened its monitoring and supervision activities to check unnecessary transactions in dollar by the dealer banks and ensure discipline in the foreign exchange market, sources said.
The central bank withdrew cash using its monetary tools including reverse repurchase agreement (repo), treasury bills, Bangladesh Bank bills, Bangladesh Government treasury bills to keep the call money rate at a reasonable level and discourage excess buying of dollar, they said.
The commercial banks also encouraged the Bangladeshi expatriates offering high exchange rates for sending 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 40.26 and Rs 40.42. Pakistani rupee ranged between Rs 60.37 and Rs 60.60.
The exchange rate of dollar against Malaysian ringgit varied between 3.4410 ringgit and 3.4545 ringgit and against Thai baht between 30.44 bahts and 33.53 bahts.
In the international market, dollar was traded between 121.81 yen and 122.15 yen against the previous week's range between 121.87 yen and 123.52 yen. Euro was traded between 1.3783 dollar and 1.3819 dollar against the previous week's range between 1.3624 dollar and 1.3768 dollar.