Taka gains slightly against dollar

The taka gained 10 paisa against the dollar this week due to a rise in supply and lower demand for the greenback, a senior Bangladesh Bank official said yesterday.
The inter-bank exchange rate was Tk 77.85 yesterday, compared to Tk 77.95 on Sunday.
The situation has forced the central bank to buy dollars from the market to stabilise the exchange rate; it bought $13 million yesterday and $30 million on Monday to help banks avoid crossing the limit for their foreign currency holding.
The net open position (foreign currency holdings) of the banks stood at an all-time high of $638 million on Tuesday, which usually remains within $200-$300 million.

The central bank’s foreign exchange reserve stood at $21.7 billion yesterday.
“The supply of the US dollar improved significantly in recent days, but demand did not,” said Sayedur Rahman, general manager of BB’s foreign exchange reserve and treasury management department.
A continued slump in oil and commodity prices in the international market is helping Bangladesh save on foreign currency, while an inflow of remittance and export money continues to grow, Rahman said.
Bangladesh received $386 million from expatriates in the first week of this month, which is a good figure, he said. Half-yearly (July-December) export receipts were nearly $15 billion.
The taka faced depreciation in November-December 2014 riding on a rise in demand and BB was forced to sell $357 million during the period, the manoeuvre being a first of its kind in the last five years.
The BB bought $5.15 billion from the foreign exchange market in fiscal 2013-14, as any significant fall in the exchange rate affects exporters and remitters acutely, which prompts the central bank to buy dollars to avert such falls. The BB bought $4.53 billion in fiscal 2012-13.