Local currency gains ‘some’ ground against dollar

The local currency gained some ground against the greenback during the week between August 24 and August 28 trading in the range of 77.40.
The FX market experienced adequate liquidity because of lower import volume against increased inflow of remittances. FX Dealers do not foresee any drastic volatility in USD/BDT rate in the coming week, however somewhat more appreciation of BDT against USD will not be surprising in the context of current market situation.
The central bank of Bangladesh intervenes in the inter bank foreign exchange market whenever necessary through buying the greenback from the commercial banks to keep the foreign exchange market and the Bangladeshi Taka currency stable.
The average daily inter-bank USD/BDT transaction volume was about $46.50 million against around $31.43 million of the week before.
Most of the banks kept their published foreign exchange rates unchanged last week. The USD/BDT selling rates for importers of major Foreign and Private Banks was at 77.65-78.20, while USD Buying rates from exporters were at 76.65-77.20. For noncommercial payments such as Tele Graphic Transfer as donations, wage earners remittance, dollar drafts etc. The average T.T Selling rate was at 77.8457 on the last working day.
USD/BDT Swap market last week was very much active. The daily average volume of swap transaction was around $42.25 million.
The local call money rate observed some depreciation and market traded around 5.50 per cent. The Central Bank supported commercial banks through Repo, Reverse Repo and ALS windows. Bangladesh Bank accepted 91-day T-Bill and 364-day T-Bill. The cutoff yield of 91-day was 6.80 per cent and 364-day was 7.84 per cent. It also accepted 15 and 20-Year Govt. Treasury bond at yield of 11.59 per cent and 11.89 per cent respectively.
    — Commercial  Bank  of  Ceylon PLC