| Central Bank Of Bangladesh Moves To Keep Forex Market Stable
Dhaka, Bangladesh (AHN) - The Bangladesh Bank (BB), the country's central bank, has intensified its open market operation to keep the foreign exchange (forex) market stable with adequate supply of the U.S. dollar, official says. As part of the measures, the BB directly purchased around US$ 20 million during the last three days from the commercial banks to help keep their 'net open position (NOP)' within the limit, fixed by the central bank earlier. "We are using our instruments to keep forex market stable," a BB senior official told AHN in the capital, Dhaka. "It's a continuous process. When we feel necessary to buy the foreign exchange from the banks, we do that." Higher inflow of remittances from expatriate Bangladeshi workers and increased export earnings have mainly boosted the supply of the greenback in the market, treasury officials observed.
Taiwan dollar little changed on G7 watch
TAIPEI, Feb 9 (Reuters) - The Taiwan dollar stayed near three-month lows on Friday amid a flat local stock market and as the yen offered little direction ahead of a Group of Seven finance ministers' meeting later in the day. Dealers are watching movements in the non-deliverable forwards market for further leads. The Taiwan dollar traded at T$33.000 to the U.S. dollar by 0231 GMT, little changed after opening flat from the previous close of T$33.010. Volume on the main Taipei Forex Inc. exchange was US$234 million after an hour and 30 minutes of trade. Dealers said they saw the Taiwan dollar trading mainly between T$32.950 and T$33.050 during Friday's session. On Thursday, the local currency softened to as low as T$33.063 during trade, which is the lowest intraday point since Nov.
Rate disparity offers baht arbitrage scope
Currency-market experts have warned that speculators will try to arbitrage the difference in baht levels in the onshore and offshore markets, consequently leading to the baht adjusting to a new equilibrium not based on fundamentals.
The Bank of Thailand (BOT) should weigh carefully the advantages and disadvantages from separating the two markets rather than be concerned only about the onshore market, they warn. The central bank had hoped that squeezing baht liquidity in the offshore market would discourage foreigners from speculating on the baht. One expert, who asked not to be named, said the BOT's remunerated reserve requirement of 30 per cent had dried up baht liquidity in the offshore market, because local banks can only sell dollars for baht in the offshore market.
Bosses for forex pile
China's blueprint for managing its foreign reserves is assuming tangible shape with draft proposals for two high- powered investment bodies a key item on the agenda of March's National People's Congress, market sources say. According to mainland media, Beijing has decided to appoint two senior officials to head new vehicles handling the country's foreign exchange reserves of more than US$1.07 trillion (HK$8.35 trillion). Guo Shuqing, chairman of the third- largest lender, China Construction Bank (0939), is tipped to become head of a new state-owned investment company that will adopt Singapore's Temasek model, China Business Post reported Saturday. Vice Minister of Finance Lou Jiwei will head a separate investment company - the State Foreign Exchange Investment Co, modeled on the Government of Singapore Investment Corporation (GIC) - that will handle one fifth of the foreign reserves.
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