Slight erosion of greenback against taka
Sarwar Zahan | Sunday, 27 July 2008
US dollar lost its strength slightly against Bangladesh taka (BDT) in the inter-bank foreign exchange market last week due to decline in demand for the greenback, fund managers said.
The lower demand for dollar was attributed to lower import payment obligations, they said.
Banks mostly possessed sufficient dollar in their reserves and were less interested in playing active roles particularly in inter-bank market. The market experienced slightly sluggish demand for the foreign currency, as importers maintained a reserved attitude to opening of fresh letters of credit, fund managers said.
The inward remittance and export earnings nourished the supply line that ensured adequate supply of dollar and helped maintain stability in the foreign exchange market.
The inter-bank exchange rate of dollar moved between Tk 68.48 and Tk 68.53 against the previous week's range between Tk 68.50 and Tk 68.53.
The commercial banks avoided cross-currency transactions responding to the instruction of the central bank. They were also shy to making swap deals. The use of swap deals is usually considered a discouraging market behaviour, they added.
Dollar also weakened in public deals and it was mostly exchanged at rates varying between Tk 67.42 and Tk 69.63 against the previous week's range between Tk 67.50 and Tk 69.70, funds managers said.
The greenback, however, was steady and it was traded at rates varying between Tk 69.80 and Tk 70.20 in the local informal market maintaining the previous week's level. The brokers used to buy dollar mainly at rates between Tk 69.80 and Tk 69.90 and sold it between Tk 70.00 and Tk 70.20, money dealers said.
The spot transactions in greenback stood at around at $ 64.50 million in the week against the previous week's around $ 90.75 million, that indicated a visible decline in demand for the greenback, they said.
The central bank maintained strong monitoring and supervision of the activities of the dealer banks to check unnecessary transactions in dollar for ensuring discipline in the foreign exchange market. Besides, it remained active in maintaining market balance providing liquidity support to banks, sources said.
The commercial banks continuously offered high exchange rates to Bangladeshi expatriates for encouraging them to transfer their 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 42.08 and Rs 42.76 against the previous week's range between Rs 42.07 and Rs 43.35 and Pakistani rupee between Rs 70.40 and Rs 71.30 against the previous week's Rs 69.65 and Rs 71.95.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.2345 ringgit and 3.2530 ringgit, and that against the Thai currency between 33.33 baht and 33.48 baht.
In the international market, dollar was traded between 106.69 yen and 107.82 yen against the previous week's range between 104.39 yen and 106.64 yen. Euro was traded between 1.5742 dollar and 1.5884 dollar against the previous week's range between 1.5838 dollar and 1.5950 dollar.
The lower demand for dollar was attributed to lower import payment obligations, they said.
Banks mostly possessed sufficient dollar in their reserves and were less interested in playing active roles particularly in inter-bank market. The market experienced slightly sluggish demand for the foreign currency, as importers maintained a reserved attitude to opening of fresh letters of credit, fund managers said.
The inward remittance and export earnings nourished the supply line that ensured adequate supply of dollar and helped maintain stability in the foreign exchange market.
The inter-bank exchange rate of dollar moved between Tk 68.48 and Tk 68.53 against the previous week's range between Tk 68.50 and Tk 68.53.
The commercial banks avoided cross-currency transactions responding to the instruction of the central bank. They were also shy to making swap deals. The use of swap deals is usually considered a discouraging market behaviour, they added.
Dollar also weakened in public deals and it was mostly exchanged at rates varying between Tk 67.42 and Tk 69.63 against the previous week's range between Tk 67.50 and Tk 69.70, funds managers said.
The greenback, however, was steady and it was traded at rates varying between Tk 69.80 and Tk 70.20 in the local informal market maintaining the previous week's level. The brokers used to buy dollar mainly at rates between Tk 69.80 and Tk 69.90 and sold it between Tk 70.00 and Tk 70.20, money dealers said.
The spot transactions in greenback stood at around at $ 64.50 million in the week against the previous week's around $ 90.75 million, that indicated a visible decline in demand for the greenback, they said.
The central bank maintained strong monitoring and supervision of the activities of the dealer banks to check unnecessary transactions in dollar for ensuring discipline in the foreign exchange market. Besides, it remained active in maintaining market balance providing liquidity support to banks, sources said.
The commercial banks continuously offered high exchange rates to Bangladeshi expatriates for encouraging them to transfer their 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 42.08 and Rs 42.76 against the previous week's range between Rs 42.07 and Rs 43.35 and Pakistani rupee between Rs 70.40 and Rs 71.30 against the previous week's Rs 69.65 and Rs 71.95.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.2345 ringgit and 3.2530 ringgit, and that against the Thai currency between 33.33 baht and 33.48 baht.
In the international market, dollar was traded between 106.69 yen and 107.82 yen against the previous week's range between 104.39 yen and 106.64 yen. Euro was traded between 1.5742 dollar and 1.5884 dollar against the previous week's range between 1.5838 dollar and 1.5950 dollar.