Greenback steady against taka
Sarwar Zahan | Sunday, 31 August 2008
US dollar maintained a steady nerve against Bangladesh taka (BDT) in the inter-bank foreign exchange market last week despite lower demand for the greenback, fund managers said.
The supply line was comfortable with steady flow of inward remittance and export proceeds, they said.
The demand for the greenback was low due to decline in import payment obligations. Many private sector commercial banks enjoyed sufficient liquidity and were eager to sell dollar in the market, they said.
The inter-bank exchange rate of dollar moved between Tk 68.51 and Tk 68.52 repeating the previous week's range.
The commercial banks avoided cross-currency transactions complying with the instruction of the central bank, but they remained highly active in making swap deals. The use of swap deals is usually considered a discouraging market behaviour, they added.
Dollar, however, gained in public deals and it was mostly exchanged at rates varying between Tk 67.42 and Tk 70.20 against the previous week's range between Tk 67.42 and Tk 69.85, fund managers said.
In the informal market, the greenback also appeared stronger and it was traded at rates varying between Tk 69.90 and Tk 70.20 in the local informal market against the previous week's range between Tk 69.70 and Tk 70.10. The brokers used to buy dollar mainly at rates between Tk 69.90 and Tk 70.00 and sold it between Tk 70.10 and Tk 70.20, money dealers said.
The spot transactions in greenback stood at around at $ 12.68 million on an average per day in the week against the previous week's daily average of $ 16.52 million showing a reduced demand for the greenback, they said.
The central bank conducted strong monitoring and supervision of the activities of the dealer banks for checking unnecessary transactions in dollar to ensure discipline in the foreign exchange market. It also provided liquidity support to selected banks for maintaining stability in the market, sources said.
The commercial banks offered high exchange rates to Bangladeshi expatriates for encouraging them to transfer money through the banking channel, money dealers 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 1.77.
The exchange rate of dollar against Indian rupee moved between Rs 43.56 and Rs 43.90 against the previous week's range between Rs 43.44 and Rs 43.96 and Pakistani rupee between Rs 75.50 and Rs 76.90 against the previous week's Rs 74.33 and Rs 76.01.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.3582 ringgit and 3.3980 ringgit, and that against the Thai currency between 34.10 baht and 34.27 baht.
In the international market, dollar was traded between 108.89 yen and 109.68 yen against the previous week's range between 108.31 yen and 110.32 yen. Euro was traded between 1.4643 dollar and 1.4801 dollar against the previous week's range between 1.4674 dollar and 1.4854 dollar.
The supply line was comfortable with steady flow of inward remittance and export proceeds, they said.
The demand for the greenback was low due to decline in import payment obligations. Many private sector commercial banks enjoyed sufficient liquidity and were eager to sell dollar in the market, they said.
The inter-bank exchange rate of dollar moved between Tk 68.51 and Tk 68.52 repeating the previous week's range.
The commercial banks avoided cross-currency transactions complying with the instruction of the central bank, but they remained highly active in making swap deals. The use of swap deals is usually considered a discouraging market behaviour, they added.
Dollar, however, gained in public deals and it was mostly exchanged at rates varying between Tk 67.42 and Tk 70.20 against the previous week's range between Tk 67.42 and Tk 69.85, fund managers said.
In the informal market, the greenback also appeared stronger and it was traded at rates varying between Tk 69.90 and Tk 70.20 in the local informal market against the previous week's range between Tk 69.70 and Tk 70.10. The brokers used to buy dollar mainly at rates between Tk 69.90 and Tk 70.00 and sold it between Tk 70.10 and Tk 70.20, money dealers said.
The spot transactions in greenback stood at around at $ 12.68 million on an average per day in the week against the previous week's daily average of $ 16.52 million showing a reduced demand for the greenback, they said.
The central bank conducted strong monitoring and supervision of the activities of the dealer banks for checking unnecessary transactions in dollar to ensure discipline in the foreign exchange market. It also provided liquidity support to selected banks for maintaining stability in the market, sources said.
The commercial banks offered high exchange rates to Bangladeshi expatriates for encouraging them to transfer money through the banking channel, money dealers 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 1.77.
The exchange rate of dollar against Indian rupee moved between Rs 43.56 and Rs 43.90 against the previous week's range between Rs 43.44 and Rs 43.96 and Pakistani rupee between Rs 75.50 and Rs 76.90 against the previous week's Rs 74.33 and Rs 76.01.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.3582 ringgit and 3.3980 ringgit, and that against the Thai currency between 34.10 baht and 34.27 baht.
In the international market, dollar was traded between 108.89 yen and 109.68 yen against the previous week's range between 108.31 yen and 110.32 yen. Euro was traded between 1.4643 dollar and 1.4801 dollar against the previous week's range between 1.4674 dollar and 1.4854 dollar.