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8 days ago

BB buys $104 million through auction

Cutoff rate Tk 121.80 per dollar

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The central bank purchased US$ 104 million more through auction from 8 banks on the interbank spot market on Monday to keep the exchange rate of the US dollar against the local currency stable.

The amount was bought under the Multiple Price Auction method and rate ranged between Tk 121.78 and Tk 121.80 per dollar, according to the central bank officials.

However, the cutoff rate stood at Tk 121.80 a dollar, compared to Tk 121.75 at the previous auction held on September 22.

The Bangladesh Bank (BB) has so far bought $1.98 billion from banks directly since July 13 last under the prevailing free-floating exchange-rate arrangement, the BB data showed.

"Our ongoing intervention in the foreign-exchange market will continue to help keep the exchange rate of the US dollar against the local currency stable," a BB senior official told The Financial Express (FE) in response to a query.

He also said the intervention is providing support to exporters and remitters, and is also contributing to an improvement in the country's foreign-exchange-reserves position.

Bangladesh's gross foreign-exchange reserves rose to $31.68 billion on Monday from $30.50 billion of the previous day as per traditional calculation by the central bank.

As per the International Monetary Fund (IMF)'s Balance of Payments International Investment Poisson Manual-six edition, generally known as BMP6, the forex reserves stood at $26.80 billion during the period under review from $26.62 billion, according to the central bank's latest statistics.

siddique.islam@gmail.com

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