Greenback steady against BDT
Sunday, 2 December 2007
Sarwar Zahan
The US dollar was steady against the Bangladesh taka (BDT) in the inter-bank foreign exchange market last week although the demand for the greenback was higher, fund managers said.
The exchange rate of the greenback moved between Tk 68.60 and Tk 68.61 maintaining the previous week's range in the interbank foreign exchange market, sources said.
The demand for the greenback was higher, as the central bank asked the commercial banks to avoid cross-currency transactions from the middle of the week. In addition, there was higher demand for import payments. The market experienced sufficient supply of the dollar with steady inward remittance and export proceeds, they said.
The greenback was slightly weaker in public deals and the cash dollar in public deals was exchanged at rates between Tk 67.60 and Tk 70.55 against the previous week's range between Tk 67.60 and Tk 70.70, funds managers said.
In the informal market, the greenback, however, slipped and it was traded at rates varying between Tk 69.60 and Tk 70.20 against the previous week's range of between Tk 70.10 and Tk 70.40. The brokers bought the dollar mainly at rates between Tk 69.60 and Tk 69.80 and sold it between Tk 70.00 and 70.20, money dealers said.
The spot transactions in greenback was higher and the total transaction in three sessions was recorded at around at $53 million against the previous week's $39 million. The flow of the dollar in the market was enough to ensure balance between the demand and the supply, they added.
The dealer banks showed increased interest in making swap deals against customer requirements to fund their import payment obligations instantly. The higher use of swap deals was taken as a discouraging market behaviour, they added.
The central bank maintained strong monitoring and supervision of the activities of the dealer banks to check unnecessary transactions in dollar by the dealer banks and ensure discipline in the foreign exchange market, sources said.
The central bank also withdrew cash through reverse repurchase agreement (repo), treasury bills, Bangladesh Bank Bills and Bangladesh Government Treasury (BGT) Bond to discourage unnecessary buying of the dollar. The steps were taken to keep the call money rate at higher than expected level, they said.
The commercial banks encouraged expatriates to send their money through the banking channel offering high exchange rates, fund managers said.
In the regional market, most of the currencies were steady against the dollar. The exchange rate of the Indian rupee against the taka ranged between Tk 1.56 and Tk 1.77.
In the regional market, the exchange rate of the dollar against the Indian rupee moved between Rs 39.65 and Rs 39.90 and the Pakistani rupee between Rs 61.01 and Rs 61.42. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.3520 ringgit and 3.3765 ringgit, and that against the Thai currency between 31.00 baht and 33.87 baht.
In the international market, dollar was traded between 107.60 yen and 110.00 against the previous week's range between 108.61 yen and 111.10 yen. The euro was traded between 1.4736 dollar and 1.4858 dollar against the previous week's range between 1.4655 dollar and 1.4834 dollar.
The US dollar was steady against the Bangladesh taka (BDT) in the inter-bank foreign exchange market last week although the demand for the greenback was higher, fund managers said.
The exchange rate of the greenback moved between Tk 68.60 and Tk 68.61 maintaining the previous week's range in the interbank foreign exchange market, sources said.
The demand for the greenback was higher, as the central bank asked the commercial banks to avoid cross-currency transactions from the middle of the week. In addition, there was higher demand for import payments. The market experienced sufficient supply of the dollar with steady inward remittance and export proceeds, they said.
The greenback was slightly weaker in public deals and the cash dollar in public deals was exchanged at rates between Tk 67.60 and Tk 70.55 against the previous week's range between Tk 67.60 and Tk 70.70, funds managers said.
In the informal market, the greenback, however, slipped and it was traded at rates varying between Tk 69.60 and Tk 70.20 against the previous week's range of between Tk 70.10 and Tk 70.40. The brokers bought the dollar mainly at rates between Tk 69.60 and Tk 69.80 and sold it between Tk 70.00 and 70.20, money dealers said.
The spot transactions in greenback was higher and the total transaction in three sessions was recorded at around at $53 million against the previous week's $39 million. The flow of the dollar in the market was enough to ensure balance between the demand and the supply, they added.
The dealer banks showed increased interest in making swap deals against customer requirements to fund their import payment obligations instantly. The higher use of swap deals was taken as a discouraging market behaviour, they added.
The central bank maintained strong monitoring and supervision of the activities of the dealer banks to check unnecessary transactions in dollar by the dealer banks and ensure discipline in the foreign exchange market, sources said.
The central bank also withdrew cash through reverse repurchase agreement (repo), treasury bills, Bangladesh Bank Bills and Bangladesh Government Treasury (BGT) Bond to discourage unnecessary buying of the dollar. The steps were taken to keep the call money rate at higher than expected level, they said.
The commercial banks encouraged expatriates to send their money through the banking channel offering high exchange rates, fund managers said.
In the regional market, most of the currencies were steady against the dollar. The exchange rate of the Indian rupee against the taka ranged between Tk 1.56 and Tk 1.77.
In the regional market, the exchange rate of the dollar against the Indian rupee moved between Rs 39.65 and Rs 39.90 and the Pakistani rupee between Rs 61.01 and Rs 61.42. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.3520 ringgit and 3.3765 ringgit, and that against the Thai currency between 31.00 baht and 33.87 baht.
In the international market, dollar was traded between 107.60 yen and 110.00 against the previous week's range between 108.61 yen and 111.10 yen. The euro was traded between 1.4736 dollar and 1.4858 dollar against the previous week's range between 1.4655 dollar and 1.4834 dollar.