Dhaka, Bangladesh (BBN) - Local currency appreciated substantially by 2.37 percent against the US dollar in the last five weeks as the inflow of the foreign currency increased in the market, treasury officials said.
The US dollar was quoted at BDT 79.80 in the inter-bank foreign exchange (forex) market on Monday against BDT 81.74 on November 15 last, they added.
"The Bangladesh Taka (BDT) has appreciated against the US dollar during the period under review due mainly to an increase in the flow of inward remittances, the less demand for the greenback to settle import payments and moderate trend of export proceeds realization,” a senior treasury official of a commercial bank (PCB) told BBN in Dhaka.
He also said the local currency might strengthen further against the greenback as the supply of the US dollar was increasing in the forex market.
“The exchange rate of US dollar against the local currency has been fixed in line with the market demand,” a senior official of the BB said while explaining the declining trend of US dollar recently.
The BB official also said the central bank already expedited buying of the US dollar from the banks directly to offset its increased supply in the market.
“We’re purchasing the greenback continuously from the banks to protect the interest of exporters and migrant workers through keeping the exchange rate of local currency against the US dollar stable,” the central banker noted.
As part of the move, the BB bought $ 9.0 million on the day from two commercial banks to keep the inter-bank foreign exchange market stable.
A total of $ 2.013 billion was bought from the commercial banks, so far in the current fiscal year (FY 2012-13) as part of the central bank's intervention in the market, the BB data showed.
BBN/SSR/AD-24Dec12-10:03 pm (BST)
