Greenback weakens against BDT
Sunday, 11 November 2007
Sarwar Zahan
US dollar weakened against Bangladesh taka (BDT) last week with steady demand for the greenback, fund managers said.
Taka appeared to be slightly appreciated, as the central bank sold dollar to improve supply position and ease pressure on the greenback, they said.
The exchange rate of the greenback moved between Tk 68.60 and Tk 68.64 against the previous week's range between Tk 68.65 and Tk 68.67 in the interbank foreign exchange market, fund manager sources said.
The demand for dollar was strong because of meeting import obligations. The flow of inward remittance was steady, but that of export income was low. This helped taka regain its strength slightly in the interbank market, they said.
The greenback was, however, strong in public deals and cash dollar in public deals was exchanged at rates between Tk 67.60 and Tk 70.10 against the previous week's range between Tk 67.42 and Tk 70.24, funds managers said.
In the informal market, the greenback retained its steady level and it was traded at rates ranging between Tk 70.10 and Tk 70.40 in the local informal market maintaining the previous week's range. 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 $ 41 million against the previous week's $ 87 million. The steady flow of dollar in the market was sufficient to maintain reasonable balance between the demand and the supply, they added.
The dealer banks were active in making swap deals against customer requirements to fund their import payment obligations instantly. The low use of swap deals was taken as an encouraging market behaviour, they added.
The central bank conducted regular monitoring and supervision to check unnecessary transactions in dollar by the dealer banks and ensure discipline in the foreign exchange market, sources said.
It also withdrew cash through auctions of reverse repurchase agreement (repo), treasury bills, Bangladesh Bank bills and Bangladesh Government Treasury (BGT) bonds to discourage buying of dollar by 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 1.71.
The exchange rate of dollar against Indian rupee moved between Rs 39.10 and Rs 39.36 and Pakistani rupee between Rs 60.72 and Rs 61.02.
US dollar weakened against Bangladesh taka (BDT) last week with steady demand for the greenback, fund managers said.
Taka appeared to be slightly appreciated, as the central bank sold dollar to improve supply position and ease pressure on the greenback, they said.
The exchange rate of the greenback moved between Tk 68.60 and Tk 68.64 against the previous week's range between Tk 68.65 and Tk 68.67 in the interbank foreign exchange market, fund manager sources said.
The demand for dollar was strong because of meeting import obligations. The flow of inward remittance was steady, but that of export income was low. This helped taka regain its strength slightly in the interbank market, they said.
The greenback was, however, strong in public deals and cash dollar in public deals was exchanged at rates between Tk 67.60 and Tk 70.10 against the previous week's range between Tk 67.42 and Tk 70.24, funds managers said.
In the informal market, the greenback retained its steady level and it was traded at rates ranging between Tk 70.10 and Tk 70.40 in the local informal market maintaining the previous week's range. 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 $ 41 million against the previous week's $ 87 million. The steady flow of dollar in the market was sufficient to maintain reasonable balance between the demand and the supply, they added.
The dealer banks were active in making swap deals against customer requirements to fund their import payment obligations instantly. The low use of swap deals was taken as an encouraging market behaviour, they added.
The central bank conducted regular monitoring and supervision to check unnecessary transactions in dollar by the dealer banks and ensure discipline in the foreign exchange market, sources said.
It also withdrew cash through auctions of reverse repurchase agreement (repo), treasury bills, Bangladesh Bank bills and Bangladesh Government Treasury (BGT) bonds to discourage buying of dollar by 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 1.71.
The exchange rate of dollar against Indian rupee moved between Rs 39.10 and Rs 39.36 and Pakistani rupee between Rs 60.72 and Rs 61.02.