Greenback strong against BDT
Sunday, 12 August 2007
Sarwar Zahan
US dollar ended stronger against Bangladesh taka (BDT) last week in a moderately active market that witnessed lower demand for the greenback. The exchange rate of the greenback fluctuated between Tk 68.52 and Tk 68.60 against the previous week's range between Tk 68.50 and Tk 68.52 in the interbank foreign exchange market, fund manager sources said.
The market experienced a lower demand for dollar because of lower import payments. Increased inward remittance and higher export proceeds, however, helped sufficient flow of dollar in the market that influenced the greenback to earn minimum gains against taka, they said.
The greenback was, however, steady in public deals as well as in the local informal market. The cash dollar in public deals was exchanged at rates between Tk 66.49 and Tk 69.90 keeping up with the previous week's range, funds managers said.
In the informal market, the greenback was traded at rates ranging between Tk 70.70 and Tk 71.00 in the local informal market against the previous week's range between Tk 70.60 and Tk 71.00. The brokers used to buy dollar mainly at rates between Tk 70.70 and Tk 70.80 and sold it between Tk 70.90 and 71.00, money dealers said.
The total spot transactions in greenback during the week stood at around 78 million dollars against the previous week's about 89 million dollars. The sufficient supply of the greenback ensured demand-supply balance in the market, they added.
The dealer banks played reserved roles 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 held regular 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 withdrew cash through auctions of reverse repurchase agreement (repo), treasury bills, Bangladesh Bank bills and Bangladesh Government treasury bonds to put pressure on liquidity and discourage buying of dollar by keeping the call money rate at a reasonable level. The market, however, maintained its stable behaviour, 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. The exchange rate of dollar against Indian rupee varied between Rs 40.23 and Rs 40.69. Pakistani rupee ranged between Rs 60.38 and Rs 60.60.
The exchange rate of dollar against Malaysian ringgit varied between 3.4520 ringgit and 3.4750 ringgit and against Thai baht between 29.60 bahts and 34.00 bahts.
In the international market, dollar was traded between 117.93 yen and 119.31 against the previous week's range between 118.54 yen and 119.17 yen. Euro was traded between 1.3692 dollar and 1.3815 dollar against the previous week's range between 1.3632 dollar and 1.3707 dollar.
US dollar ended stronger against Bangladesh taka (BDT) last week in a moderately active market that witnessed lower demand for the greenback. The exchange rate of the greenback fluctuated between Tk 68.52 and Tk 68.60 against the previous week's range between Tk 68.50 and Tk 68.52 in the interbank foreign exchange market, fund manager sources said.
The market experienced a lower demand for dollar because of lower import payments. Increased inward remittance and higher export proceeds, however, helped sufficient flow of dollar in the market that influenced the greenback to earn minimum gains against taka, they said.
The greenback was, however, steady in public deals as well as in the local informal market. The cash dollar in public deals was exchanged at rates between Tk 66.49 and Tk 69.90 keeping up with the previous week's range, funds managers said.
In the informal market, the greenback was traded at rates ranging between Tk 70.70 and Tk 71.00 in the local informal market against the previous week's range between Tk 70.60 and Tk 71.00. The brokers used to buy dollar mainly at rates between Tk 70.70 and Tk 70.80 and sold it between Tk 70.90 and 71.00, money dealers said.
The total spot transactions in greenback during the week stood at around 78 million dollars against the previous week's about 89 million dollars. The sufficient supply of the greenback ensured demand-supply balance in the market, they added.
The dealer banks played reserved roles 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 held regular 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 withdrew cash through auctions of reverse repurchase agreement (repo), treasury bills, Bangladesh Bank bills and Bangladesh Government treasury bonds to put pressure on liquidity and discourage buying of dollar by keeping the call money rate at a reasonable level. The market, however, maintained its stable behaviour, 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. The exchange rate of dollar against Indian rupee varied between Rs 40.23 and Rs 40.69. Pakistani rupee ranged between Rs 60.38 and Rs 60.60.
The exchange rate of dollar against Malaysian ringgit varied between 3.4520 ringgit and 3.4750 ringgit and against Thai baht between 29.60 bahts and 34.00 bahts.
In the international market, dollar was traded between 117.93 yen and 119.31 against the previous week's range between 118.54 yen and 119.17 yen. Euro was traded between 1.3692 dollar and 1.3815 dollar against the previous week's range between 1.3632 dollar and 1.3707 dollar.