Local forex market maintains soft tone

Local forex market maintained soft tone in the week to December 11 and traded around 77.88/USD levels at the end of the week.

The market started to be eased due to higher inward remittances and exports in last month. The scenario might be changed with the event of larger import payments.

The average daily inter-bank USD/BDT transaction volume was about $28.47 million against around $34.25 million of the week before.

Most of the banks kept their published foreign exchange rates low throughout the week. The USD/BDT selling rates for importers of major Foreign and Private Banks was at 78.40-79.00, while USD buying rates from exporters were at 77.40-78.00. For non-commercial payments such as Tele Graphic Transfer as donations, wage earners remittance, dollar drafts etc, the average T.T buying rate was in the range of 77.40-78.00 while average T.T selling rate was at 78.6790 on the last working day.

USD/BDT swap market last week was very much active. The daily average volume of swap transaction was around $55.00 million.

The local call money rate observed stable tone but showed bit demand in the  later  part of the week due to some liquidity shortage and market was traded around 7.00 per cent. Bangladesh Bank supported commercial banks through Reverse Repo and ALS windows. Bangladesh Bank accepted 91-day T-Bill and 364-day T-Bill. The cutoff yield of 91-day was 7.25 per cent and 364-day was 8.13 per cent. It also accepted 5-Year Govt. Treasury bond at yield of 9.60 per cent.

    — Commercial Bank of Ceylon PLC