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          The gap between buying and selling rates of US dollar in the interbank foreign exchange market closed last week, as the greenback slightly gained against Bangladesh taka.
The nationalised banks raised the selling rate of dollar from the middle of the week. The dollar, however, maintained a stable band for the earlier days of the week despite higher demand for the greenback. The dollar was also steady at its high level in the local informal market as well as in public deals, fund manager sources said.
The exchange rate of the greenback mainly moved between Tk 65.70 and Tk 65.75 maintaining previous week's range in the beginning and ultimately stood stable at Tk 65.75.
The total interbank spot transaction stood at about 11.65 million dollar during the week against that of the previous week's around 11.00 million dollar, reflecting a slight uptrend in demand for the greenback.
The pressure on inter-bank market was lower than expected due to increased use of swap facility by private sector dealer banks. The swap deals facilitated local banks to fund their import payment obligations instantly and reduce pressure on the spot market, they said.
The nationalised commercial banks (NCBs) were the main sellers and the foreign and private commercial banks remained mostly as buyers. Demand for foreign currencies was reasonably stable due to large export proceeds and comparatively steady import payments.
The nationalised banks raised the ground rate of the dollar in interbank transactions to draw increased remittance through the banking channel. The speculations were almost absent from the foreign exchange market, they added.
The stakeholders and the private sector dealer banks were apparently sincere to abide by the central bank's directives to maintain stability in the foreign exchange market. The joint efforts of the central bank and the dealer banks helped improve the overall foreign exchange management.
The central bank injected the dollar into the market through the NCBs to ensure sufficient flow of the greenback in the market.
The dealer banks remained cautious in using the greenback in opening import letters of credit and had to submit their daily foreign exchange transaction reports to the central bank in prescribed formats.
The central bank also intensified its monitoring and supervision over activities of the dealer banks to ensure appropriate use of the foreign exchanges and check improper use of the dollar, they said.
The private sector dealer banks seemed to be sincere in keeping the dollar at a stable level and helped to keep the upper edge of the greenback unchanged in the inter-bank market.
Some private sector local banks and foreign banks readjusted the exchange rates of the dollar responding to the market trend. The dealer banks tried to provide improved services to Bangladeshi expatriates so that they feel encouraged to transfer their funds through the banking channel, they added.
The higher inflow of export income and increased inward remittance helped to maintain adequate supply of the dollar in the market. The supply of the greenback was sufficient to accommodate with the growing demand, fund managers said.
The central bank actively used its reverse repurchase agreement auction tool last week to maintain a low cost of local currency in the inter-bank market as a measure for discouraging stakeholders to buy excess of greenback, they said.
The nationalised banks transacted the dollar mainly at Tk 65.70-75 against the previous week's rate at Tk 65.70. The private sector local and foreign banks made transactions of the greenback among them at rates between Tk 65.70 and Tk 65.75 in the interbank market, they added.
The dollar was traded at rates between Tk 67.50 and Tk 67.90 in the local informal market maintaining the previous week's range. The brokers purchased the dollar mainly at rates between Tk 67.50 and Tk 67.70 and sold it between Tk 67.80 and Tk 67.90, money dealers said.
The dollar was firm in public deals and it was traded between Tk 64.80 and Tk 66.75 maintaining the previous week's trend.
In the regional market, most of the currencies were steady against the dollar. The exchange rate of the Indian rupee against the taka ranged between Tk 1.48 and Tk 1.53.
The exchange rate of the dollar against the Indian rupee varied between Rs 44.91 and Rs 45.19. The Pakistani rupee ranged between Rs 59.65 and Rs 59.85.
The exchange rate of the dollar against the Malaysian ringgit varied between 3.7735 ringgit and 3.7755 ringgit and against the Thai baht between 40.80 baths and 40.97 baths.
In the international market, the dollar was traded between 115.01 yen and 116.00 yen against the previous range between 113.90 yen and 115.94 yen. The euro was traded between 1.1937 dollar and 1.2104 dollar against the previous range between 1.1872 dollar and 1.2120 dollar.