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Bangladesh Bank (BB), as part of its foreign- exchange market intervention, bought US$134 million through auctions from five commercial banks to stabilise the dollar-taka exchange rate, taking the total volume of purchased dollars past the $1.0- billion mark.
With the latest intervention, the central bank has bought a total of $1,129.50 million since July 13 under the prevailing free-floating exchange rate regime.
Bankers and money market analysts say the dollar-buying drives are helping stabilise the dollar-taka exchange rate while strengthening the country's foreign exchange reserves, even ahead of an upcoming $1.50 billion payment under the Asian Clearing Union (ACU) arrangement.
The moves also help commercial banks meet local currency obligations, as the BB injects over Tk 137 billion into the system through the dollar procurement programme, according to central bank sources.
Speaking on condition of anonymity, a BB official said Thursday's purchase was conducted under the Multiple Price Auction method, with a cut-off rate of Tk 121.75 per US dollar.
The official noted that interbank forex trading has slowed recently due to weaker demand amid a surge in dollar supply.
The central banker added that the government is set to settle $1.50 billion in ACU liabilities on Sunday, but the gross foreign exchange reserve is expected to remain above $30 billion.
BB data show the country's forex reserves rose to $31.43 billion as of September 3, up from $31.18 billion in August and $29.80 billion at the end of July.
The central bank's interventions have also reversed the recent downward trend in the dollar-taka reference rate. The rate rose from Tk 121.68 per dollar on August 28 to Tk 121.80 per dollar on September 4, reflecting BB's dollar-buying activity.
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