Currency market largely stable after Brexit

Local currency market remained largely stable after 30 days of the Brexit that had sent a wave of volatility to the global currency market last month.
The pound sterling lost 8.0 per cent against US dollars on the first day of trade following Brexit, held on June 23 to pave the way for the United Kingdom to exit from the European Union (EU), reports BSS.
The pound also drifted further on the global market in the past 30 days in post-Brexit trade and hit a 30-year low at $1.29 on July 6 as “investors are selling sterling assets in expectation that the Bank of England will loosen monetary policy to cope with the looming economic slowdown,” according an analysis of the British magazine the Economist.
The pound in the local market also witnessed some pressure from the sellers, but the decline in the exchange rate against Taka was not as big as it was on the global market. According to BB, the sterling was traded for Tk 103.55 on Thursday which was 107.24 on June 23.
Analysts here expected that the currency market would remain stable in the coming days, with the Bangladesh Bank (BB) is unveiling an accommodative monetary policy later this month for the next six months.
“The currency market has not face any big volatility as the foreign exchange transaction of the country mostly depends on US dollar,” World Bank lead Economist in Dhaka Dr Zahid Hussain told the news agency.
The bilateral trade relations between Bangladesh and the UK is very good, he said, adding that the exchange rate of pound against Taka will not have so much effect on business transaction.

Currency market largely stable after Brexit

Local currency market remained largely stable after 30 days of the Brexit that had sent a wave of volatility to the global currency market last month. The pound sterling lost 8.0 per cent against US dollars on the first day of trade following Brexit, held on June 23 to pave the way for the United Kingdom to exit from the European Union (EU), reports BSS. The pound also drifted further on the global market in the past 30 days in post-Brexit trade and hit a 30-year low at $1.29 on July 6 as investors are selling sterling assets in expectation that the Bank of England will loosen monetary policy to cope with the looming economic slowdown, according an analysis of the British magazine the Economist. The pound in the local market also witnessed some pressure from the sellers, but the decline in the exchange rate against Taka was not as big as it was on the global market. According to BB, the sterling was traded for Tk 103.55 on Thursday which was 107.24 on June 23. Analysts here expected that the currency market would remain stable in the coming days, with the Bangladesh Bank (BB) is unveiling an accommodative monetary policy later this month for the next six months. The currency market has not face any big volatility as the foreign exchange transaction of the country mostly depends on US dollar, World Bank lead Economist in Dhaka Dr Zahid Hussain told the news agency. The bilateral trade relations between Bangladesh and the UK is very good, he said, adding that the exchange rate of pound against Taka will not have so much effect on business transaction.