Greenback strong against Bangladesh taka
Sunday, 30 September 2007
Sarwar Zahan
The US dollar was stable and strong against the Bangladesh taka (BDT) last week despite higher demand for the greenback, fund managers said.
The exchange rate of the greenback moved between Tk 68.69 and Tk 68.71 against the previous week's range of between Tk 68.70 and Tk 68.71 in the interbank foreign exchange market, the sources said.
The steady inflow of remittance and export earnings ensured steady supply of the greenback in the market and enabled the taka to retain its stable level in the interbank market, they said.
The greenback was also steady in public deals as well as in the local informal market. The cash dollar in public deals was exchanged at rates between Tk 67.60 and Tk 69.90 against the previous week's range between Tk 67.55 and Tk 69.90, funds managers said.
In the informal market, the greenback fell slightly and it was traded at rates ranging between Tk 71.00 and Tk 71.50 in the local informal market against the previous week's range of between Tk 72.00 and Tk 72.40. The brokers used to buy the dollar mainly at rates between Tk 71.00 and Tk 71.20 and sold it between Tk 71.30 and 71.50, money dealers said.
The spot transactions in greenback was higher in the week in comparison to that of the previous week. The total transaction was recorded around at $ 34.00 million against the previous week's total of $ 26.00 million. The steady flow of the dollar in the market helped maintain the balance between demand and supply in the market, they added.
The dealer banks were less 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 intensified 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 also regularly withdraw cash through reverse repurchase agreement (repo), treasury bills, Bangladesh Bank Bills and Bangladesh Government Treasury (BGT) Bond to keep pressure on liquidity and discourage buying of the dollar by keeping the call money rate at reasonable level, they said.
The commercial banks encouraged 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 the Indian rupee against the taka ranged between Tk 1.56 and Tk 1.71.
In the regional market, the exchange rate of the dollar against the Indian rupee moved between Rs 39.65 and Rs 39.83 and the Pakistani rupee between Rs 60.60 and Rs 60.80.
Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.4175 ringgit and 3.4465 ringgit, and that against the Thai currency between 31.70 baht and 34.28 baht.
In the international market, dollar was traded between 114.48 yen and 115.65 yen against the previous week's range between 114.71 yen and 116.01 yen. The euro was traded between 1.4090 dollar and 1.4160 dollar against the previous week's range between 1.3863 dollar and 1.4047 dollar.
The US dollar was stable and strong against the Bangladesh taka (BDT) last week despite higher demand for the greenback, fund managers said.
The exchange rate of the greenback moved between Tk 68.69 and Tk 68.71 against the previous week's range of between Tk 68.70 and Tk 68.71 in the interbank foreign exchange market, the sources said.
The steady inflow of remittance and export earnings ensured steady supply of the greenback in the market and enabled the taka to retain its stable level in the interbank market, they said.
The greenback was also steady in public deals as well as in the local informal market. The cash dollar in public deals was exchanged at rates between Tk 67.60 and Tk 69.90 against the previous week's range between Tk 67.55 and Tk 69.90, funds managers said.
In the informal market, the greenback fell slightly and it was traded at rates ranging between Tk 71.00 and Tk 71.50 in the local informal market against the previous week's range of between Tk 72.00 and Tk 72.40. The brokers used to buy the dollar mainly at rates between Tk 71.00 and Tk 71.20 and sold it between Tk 71.30 and 71.50, money dealers said.
The spot transactions in greenback was higher in the week in comparison to that of the previous week. The total transaction was recorded around at $ 34.00 million against the previous week's total of $ 26.00 million. The steady flow of the dollar in the market helped maintain the balance between demand and supply in the market, they added.
The dealer banks were less 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 intensified 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 also regularly withdraw cash through reverse repurchase agreement (repo), treasury bills, Bangladesh Bank Bills and Bangladesh Government Treasury (BGT) Bond to keep pressure on liquidity and discourage buying of the dollar by keeping the call money rate at reasonable level, they said.
The commercial banks encouraged 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 the Indian rupee against the taka ranged between Tk 1.56 and Tk 1.71.
In the regional market, the exchange rate of the dollar against the Indian rupee moved between Rs 39.65 and Rs 39.83 and the Pakistani rupee between Rs 60.60 and Rs 60.80.
Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.4175 ringgit and 3.4465 ringgit, and that against the Thai currency between 31.70 baht and 34.28 baht.
In the international market, dollar was traded between 114.48 yen and 115.65 yen against the previous week's range between 114.71 yen and 116.01 yen. The euro was traded between 1.4090 dollar and 1.4160 dollar against the previous week's range between 1.3863 dollar and 1.4047 dollar.