Dhaka, Oct. 2 -- Foreign-exchange swap transactions on the interbank market dropped in August compared with the previous month, even as the Bangladesh Bank pressed ahead with its strategy to promote spot-market trading over swaps.

The move is intended to make the market more transparent and reflective of real demand-and-supply conditions.

Bankers, however, say the fall in swaps is largely the result of the central bank's own intervention, as it purchased US dollars directly from the market.

Despite the decline, swaps still accounted for the lion's share of interbank forex activity in August.

Commercial bank executives, however, argue that the decline was driven by the central bank's purchases of US dollars from the market.

Bangladesh...