Bangladesh Bank buys $134m through dollar auction

Bangladesh Bank (BB) on Thursday purchased US$134 million from five commercial banks through multiple auction methods as part of its ongoing strategy to curb the depreciation of the US dollar against the taka and revitalise the remittance and export sectors.

The central bank set a cut-off rate of Tk 121.75 for these dollar purchases, according to the central bank data.

A senior official of the central bank said BB has intervened in the market by purchasing US dollars from commercial banks through an auction, aiming to keep the exchange rate of the BDT against the greenback stable.

He also said the central bank will sell the US dollar to banks through a similar auction if the exchange rate of the greenback increases against the local currency.

“We may consider intervening in the market whenever necessary to ensure the exchange rate of the US dollar against the local currency remains stable,” he added.