Bangladesh interbank dollar trading hits five-year high

Bangladesh’s commercial banks traded more than $200 million among themselves Oct. 8, reaching a five-year high, according to central bank officials and bankers cited by The Business Standard.

Trading included $155 million in immediate transactions and more than $50 million through currency swaps. Bangladesh Bank data showed transactions of $101 million Oct. 7 and $82 million Oct. 6.

A senior central bank official said dollar supplies were relatively abundant while demand remained below inflows from remittances and exports. Banks nearing regulatory limits on foreign currency holdings were selling dollars to other lenders.

Bankers said institutions facing government payment obligations bought dollars ahead of those payments. Some also anticipated weaker remittance inflows this month.

Bangladesh received $2.76 billion in remittances in September, its lowest monthly total in 11 months, according to the report.