Dhaka, Bangladesh (BBN) – Bangladesh taka (BDT) on Monday appreciated marginally by 0.017 per cent against the US dollar following increased inflow of foreign currency in the market.
The US dollar was quoted at BDT 68.50- BDT 68.52 in the inter-bank foreign exchange market on the day against BDT 68.51- BDT 68.52 of the previous working day, officials said.
The flow of foreign exchange recorded a sudden rise on the day a foreign commercial bank received a fund worth $350m on the day, market operators said.
The fund was remitted by the Japan’s NTT DoCoMo as payment against the purchase of 30 per cent stake of AK Khan in the mobile phone company TM International Bhd (TMIB), known as AKTEL.
The Japanese company has purchased the 30 per cent stake by acquiring all the issued and paid-up shares of TMIB previously held by AK Khan and its group.
“The local currency has slightly appreciated against the US dollar on the day mainly due to increase in the inflow of foreign currency in the market,” a senior official of the Bangladesh Bank (BB) told BBN in the capital, Dhaka.
The foreign commercial bank was compelled to sell foreign exchange on the day to maintain their ‘net open position (NOP)’ within the required limit, he added.
Besides, the central bank bought US$139 million from the foreign commercial bank at a rate of BDT 68.50 aiming to keep the country’s foreign exchange market stable.
The BB took the move to keep the rate of the local currency stable against the greenback, which is essential for ensuring the inflow of remittances and export earnings.
A total of $60 million was traded in the inter-bank foreign exchange market on the day while the foreign bank sold at least $40 million to two state-owned commercial banks (SCBs), the market operators added.
On the other hand, the country’s foreign exchange reserve stood at $5.65 billion on the day following the purchase of foreign exchange from the market by the BB and adjustment of overdraft facilitates by the SCBs.
A total of $70 million was adjusted with the OD facilities with the central bank on the day by the SCBs, they added.
The central bank has continued its OD facilities to the commercial banks mainly for making payments of fuel oils, fertilizer and food grains.
As part of its market intervention, the central bank bought $9.50 million from the commercial banks earlier to keep the country’s inter-bank foreign exchange market stable.
The BB started intervention in the market by selling the US currency directly to authorized dealers from October 29, 2007.
Since then, the central bank sold $735 million to the commercial banks as part of its intervention in the market.
BBN/SI/SS/AD-23September08-11:45AM (BST)
