Dhaka, Bangladesh (BBN)– The appreciating mode of Bangladesh Taka (BDT) against the US Dollar (US$) may continue unit the upcoming Eid-ul- Fitr festival because of lower demand for the greenback in the market.
The BDT remained stable against the US$ and it was traded around 77.80 levels in the inter-bank foreign exchange (forex) market in the recent months, market operators said.
“The existing trend of inter-bank foreign forex market may continue unit the Eid festival,” a senior official of a foreign commercial bank told BBN in Dhaka.
He also said demand for the US$ may pick up if the government strengthens implementation of its mega projects including Padama Bridge.
Currently, the government is implementing various mega infrastructure projects including Padma Multipurpose Bridge, deep-sea port at Sonadia in Cox’s Bazar, Dhaka-Chittagong Access Control Highway and Dhaka City Elevated Expressway that would help boost economic growth potential.
The average daily inter-bank USD/BDT transaction volume was about US$ 38.40 million against US$ 49.19 million of the previous week.
Most of the banks kept their published foreign exchange rates unchanged throughout the week. The USD/BDT selling rates for importers of major foreign and private banks was at 77.90-78.50, while US$ buying rates from exporters were at 76.90-77.50.
For non- commercial payments such as telegraphic transfer as donations, wage earners remittance, dollar drafts etc, the average T.T buying rate was in the range of 76.90-77.50 while average T.T selling rate was at 78.1740 on the last working day.
USD/BDT swap market in this week remained brisk. The daily average volume of swap transaction was around US$ 49.00 million.
Meanwhile, the central bank has expedited purchase of the US dollars from commercial banks to offset higher inflow of foreign exchange ahead of the Eid-ul Fitr festival.
As part of the latest moves, the Bangladesh Bank (BB) bought US$50 million from three commercial banks directly on Thursday aiming to keep the inter-bank foreign exchange (forex) market rate stable.
On June 16 last, the central bank similarly purchased $50 million from five commercial banks on the same ground at market rate, according to the central bank officials.
“The central bank is purchasing the US dollars from the banks to protect the interests of exporters and migrant workers by keeping the exchange rate of the BDT against the US dollar stable,” a BB senior official told BBN.
He also said such purchase also helps the banks to comply with the net open position (NOP) rules for holding foreign exchange properly.
The supply side of the foreign currency has improved recently mainly due to higher inflow of remittances along with steady growth of export earnings, the central banker explained.
The country received $604.16 million as remittances between June 01 and June 12 from Bangladesh nationals who are working abroad, according to the central bank’s latest statistics.
The remittances from Bangladesh nationals working abroad were estimated at US$1.32 billion in May 2015, up by $21.40 million from the level of the previous month. In April last, the remittances stood at $1.30 billion. It was $1.21 billion in May, 2014.
A total of $3.45 billion was bought from the commercial banks between July 2 and June 18 of the outgoing fiscal year (FY) 2014-15 as part of the BB’s intervention in the market.
The central bank purchased a record $5.15 billion from the banks in the FY 14 on the same ground, the BB data showed.