March 29, 2024, 6:52 am


SAM

Published:
2019-12-29 00:42:07 BdST

Dollar sales on to stabilise forex market


FT ONLINE

The central bank on Thursday further extended foreign exchange support to banks by selling US dollars to keep the market stable, officials said.

As part of the move, the Bangladesh Bank sold US$8.0 million to a state-owned commercial bank, to meet the growing demand for the greenback.

"We've provided the foreign currency support at a market rate to the state bank to help it settle import payment obligations," a BB senior official said.

The US dollar was quoted at Tk 84.90 each on Thursday in the inter-bank forex market, unchanged from the previous level, according to the market operators.

The central bank may continue providing such a support to the banks in line with the market requirement, the official added.

A total of $291 million has been sold to the commercial banks so far this fiscal year.

During FY 19, the central bank sold $2.34 billion to the banks on the same ground, according to the official data.

The market operators said the demand for the US dollar has maintained an upward trend this week mainly due to higher import payment pressure, particularly for intermediate goods and oils.

"The demand for the greenback may increase in the near future if the central bank does not provide adequate support," a senior treasury official of a leading private bank said.

He also said the Bangladesh Taka has maintained a depreciating trend against the US currency mainly due to higher demand for the greenback.

Meanwhile, the local currency depreciated by Tk 1.0 against the greenback in the inter-bank forex market from January 02 to December 19.

The greenback was quoted at Tk 84.90 each in the inter-bank market on December 19 against Tk 83.90 on January 02. On December 19, the local currency lost its value by two poisha against the US currency.

Earlier on December 18, the local currency appreciated by two poisha against the greenback after nearly three years in the inter-bank forex market.

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