Greenback maintains strong nerve against BDT
Sunday, 23 September 2007
Sarwar Zahan
US dollar maintained its strong nerve against Bangladesh taka (BDT) last week despite limited demand for the greenback, fund managers said.
The exchange rate of the greenback moved between Tk 68.70 and Tk 68.71 against the previous week's range between Tk 68.69 and Tk 68.71 in the interbank foreign exchange market, fund manager sources said.
The steady inflow of remittance and export earnings caused moderate supply of the greenback in the market and enabled dollar to retain its strength in the interbank market, they said.
The greenback was also stable in public deals as well as in the local informal market. Cash dollar in public deals was exchanged at rates between Tk 67.55 and Tk 69.90 against the previous week's range between Tk 67.50 and Tk 69.90, funds managers said.
In the informal market, the greenback was traded at rates ranging between Tk 72.10 and Tk 72.40 in the local informal market against the previous week's range between Tk 72.00 and Tk 72.40. The brokers used to buy dollar mainly at rates between Tk 72.00 and Tk 72.20 and sold it between Tk 72.30 and 72.40, money dealers said.
The spot transactions in greenback was lower than that of the previous week. The total transaction was recorded at $ 36.80 million against the previous week's average of $ 48.70 million. The market experienced a steady supply of the greenback to maintain balance between the demand and the supply in the market, they added.
The dealer banks were increasingly active 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 conducted regular monitoring and supervision to check unnecessary transactions in dollar by the dealer banks and ensure discipline in the foreign exchange market, sources said.
The central bank used to withdraw cash through reverse repurchase agreement (repo), treasury bills, Bangladesh Bank bills and Bangladesh Government treasury (BGT) bonds to maintain pressure on liquidity and discourage buying of dollar by keeping the call money rate at a reasonable level, they said.
The commercial banks offered 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 39.99 and Rs 40.59 and Pakistani rupee between Rs 60.57 and Rs 60.67.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.4450 ringgit and 3.4939 ringgit, and that against the Thai currency between 31.90 baht and 34.43 baht.
In the international market, dollar was traded between 114.71 yen and 116.01 against the previous week's range between 113.38 yen and 115.00 yen. Euro was traded between 1.3863 dollar and 1.4047 dollar against the previous week's range between 1.3770 dollar and 1.3885 dollar.
US dollar maintained its strong nerve against Bangladesh taka (BDT) last week despite limited demand for the greenback, fund managers said.
The exchange rate of the greenback moved between Tk 68.70 and Tk 68.71 against the previous week's range between Tk 68.69 and Tk 68.71 in the interbank foreign exchange market, fund manager sources said.
The steady inflow of remittance and export earnings caused moderate supply of the greenback in the market and enabled dollar to retain its strength in the interbank market, they said.
The greenback was also stable in public deals as well as in the local informal market. Cash dollar in public deals was exchanged at rates between Tk 67.55 and Tk 69.90 against the previous week's range between Tk 67.50 and Tk 69.90, funds managers said.
In the informal market, the greenback was traded at rates ranging between Tk 72.10 and Tk 72.40 in the local informal market against the previous week's range between Tk 72.00 and Tk 72.40. The brokers used to buy dollar mainly at rates between Tk 72.00 and Tk 72.20 and sold it between Tk 72.30 and 72.40, money dealers said.
The spot transactions in greenback was lower than that of the previous week. The total transaction was recorded at $ 36.80 million against the previous week's average of $ 48.70 million. The market experienced a steady supply of the greenback to maintain balance between the demand and the supply in the market, they added.
The dealer banks were increasingly active 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 conducted regular monitoring and supervision to check unnecessary transactions in dollar by the dealer banks and ensure discipline in the foreign exchange market, sources said.
The central bank used to withdraw cash through reverse repurchase agreement (repo), treasury bills, Bangladesh Bank bills and Bangladesh Government treasury (BGT) bonds to maintain pressure on liquidity and discourage buying of dollar by keeping the call money rate at a reasonable level, they said.
The commercial banks offered 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 39.99 and Rs 40.59 and Pakistani rupee between Rs 60.57 and Rs 60.67.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.4450 ringgit and 3.4939 ringgit, and that against the Thai currency between 31.90 baht and 34.43 baht.
In the international market, dollar was traded between 114.71 yen and 116.01 against the previous week's range between 113.38 yen and 115.00 yen. Euro was traded between 1.3863 dollar and 1.4047 dollar against the previous week's range between 1.3770 dollar and 1.3885 dollar.