Greenback stable against BDT
Sunday, 25 November 2007
Sarwar Zahan
US dollar maintained its stable nerve against Bangladesh taka (BDT) in the inter-bank foreign exchange market last week with higher demand for the greenback, fund managers said.
The exchange rate of the greenback mainly moved between Tk 68.60 and Tk 68.61 coinciding with the previous week's range in the interbank foreign exchange market, fund manager sources said.
The demand for the greenback, however, was steady due to cautious opening of letters of credit. The market witnessed adequate flow of the foreign currency because of steady inward remittance and export proceeds, they said.
The greenback was also stable in public deals and cash dollar in public deals was exchanged at rates between Tk 67.60 and Tk 70.70 against the previous week's range between Tk 67.60 and Tk 70.75, funds managers said.
In the informal market, the greenback appeared stronger and it was traded at rates ranging between Tk 70.10 and Tk 70.40 in the local informal market against the previous week's range between Tk 69.60 and Tk 69.90. The brokers used to buy dollar mainly at rates between Tk 70.10 and Tk 70.20 and sold it between Tk 70.30 and 70.40, money dealers said.
The spot transactions in greenback were high and the total transaction in three sessions was recorded at around at $ 39.50 million against the previous week's $ 29 million. The steady flow of dollar in the market ensured a reasonable balance between the demand and the supply, they added.
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 an encouraging market behaviour, they added.
The central bank was active in monitoring and supervision of the activities of the dealer banks to control unnecessary transactions in dollar by them and enforce discipline in the foreign exchange market, sources said.
The central bank, in addition, continued withdrawal of cash through reverse repurchase agreement (repo), treasury bills, Bangladesh Bank bills and Bangladesh Government treasury (BGT) bonds discouraging unnecessary buying of dollar. The measure was taken for keeping the call money rate at a higher-than-expected 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 were steady against dollar. The exchange rate of Indian rupee against taka ranged between Tk 1.56 and Tk 1.77.
The exchange rate of dollar against Indian rupee moved between Rs 39.05 and Rs 39.44 and Pakistani rupee between Rs 60.90 and Rs 61.35.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.3650 ringgit and 3.3855 ringgit, and that against the Thai currency between 31.50 baht and 33.90 baht.
In the international market, dollar was traded between 108.61 yen and 111.10 against the previous week's range between 109.33 yen and 110.98 yen. Euro was traded between 1.4655 dollar and 1.4834 dollar against the previous week's range between 1.4563 dollar and 1.4686 dollar.
US dollar maintained its stable nerve against Bangladesh taka (BDT) in the inter-bank foreign exchange market last week with higher demand for the greenback, fund managers said.
The exchange rate of the greenback mainly moved between Tk 68.60 and Tk 68.61 coinciding with the previous week's range in the interbank foreign exchange market, fund manager sources said.
The demand for the greenback, however, was steady due to cautious opening of letters of credit. The market witnessed adequate flow of the foreign currency because of steady inward remittance and export proceeds, they said.
The greenback was also stable in public deals and cash dollar in public deals was exchanged at rates between Tk 67.60 and Tk 70.70 against the previous week's range between Tk 67.60 and Tk 70.75, funds managers said.
In the informal market, the greenback appeared stronger and it was traded at rates ranging between Tk 70.10 and Tk 70.40 in the local informal market against the previous week's range between Tk 69.60 and Tk 69.90. The brokers used to buy dollar mainly at rates between Tk 70.10 and Tk 70.20 and sold it between Tk 70.30 and 70.40, money dealers said.
The spot transactions in greenback were high and the total transaction in three sessions was recorded at around at $ 39.50 million against the previous week's $ 29 million. The steady flow of dollar in the market ensured a reasonable balance between the demand and the supply, they added.
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 an encouraging market behaviour, they added.
The central bank was active in monitoring and supervision of the activities of the dealer banks to control unnecessary transactions in dollar by them and enforce discipline in the foreign exchange market, sources said.
The central bank, in addition, continued withdrawal of cash through reverse repurchase agreement (repo), treasury bills, Bangladesh Bank bills and Bangladesh Government treasury (BGT) bonds discouraging unnecessary buying of dollar. The measure was taken for keeping the call money rate at a higher-than-expected 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 were steady against dollar. The exchange rate of Indian rupee against taka ranged between Tk 1.56 and Tk 1.77.
The exchange rate of dollar against Indian rupee moved between Rs 39.05 and Rs 39.44 and Pakistani rupee between Rs 60.90 and Rs 61.35.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.3650 ringgit and 3.3855 ringgit, and that against the Thai currency between 31.50 baht and 33.90 baht.
In the international market, dollar was traded between 108.61 yen and 111.10 against the previous week's range between 109.33 yen and 110.98 yen. Euro was traded between 1.4655 dollar and 1.4834 dollar against the previous week's range between 1.4563 dollar and 1.4686 dollar.