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The central bank purchased an additional US$81 million through an auction from 10 banks in the interbank spot market on Monday, aiming to keep the exchange rate of the US dollar against the taka stable.
The amount was bought under the Multiple Price Auction method, with a cut-off rate of Tk 122.30 per dollar, according to central bank officials.
Bangladesh Bank's (BB) latest intervention in the foreign exchange (forex) market comes amid a strong inflow of remittances during the first 11 days of the current month.
"We are purchasing US dollars directly from banks to offset the higher inflow of remittances ahead of the upcoming national polls and the holy month of Ramadan," a senior central banker told The Financial Express while explaining the latest market situation.
Inward remittances surged by more than 81 per cent to US$1.34 billion during January 1-11 this year, compared with US$737 million in the same period last year.
The central banker said such interventions help keep the exchange rate of the US dollar against the local currency stable, which in turn encourages both exporters and remitters.
According to the latest BB data, the central bank has so far purchased US$3.83 billion directly from banks since July 13 last year under the prevailing free-floating exchange rate regime.
"The ongoing intervention is also contributing to a gradual strengthening of the country's foreign exchange reserves," the BB official added.
Meanwhile, Bangladesh's gross foreign exchange reserves rose to US$32.55 billion on Monday from US$32.44 billion on January 8, based on the central bank's traditional calculation.
Market operators said the recent increase in dollar inflows reflects lower import payment obligations alongside a stronger flow of inward remittances.
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