Dhaka, Bangladesh (BBN)- The central bank has continued its intervention in the foreign exchange market through purchase of US dollar from banks directly to keep the market stable, officials said.
As part of the operation, the Bangladesh Bank (BB) bought US$2.0 million from a private commercial bank on Thursday at market rate to mop up excess foreign exchange from the market.
The US dollar was quoted at Tk 69.4000- Tk 69.4200 in the inter-bank foreign exchange market on the day against Tk 69.4000- Tk 69.4010 of the previous working day, according to the central bank statistics.
"We've bought the US currency at market rate from the commercial bank directly aiming to keep the rate of local currency stable against the greenback," a BB senior official said, adding that such intervention will continue in line with the market requirement.
Market operator welcomed the BB’s move, saying that the central bank plays the pivotal role of stabilizing the local currency exchange rate against the greenback through active intervention in the market.
“Such operation helps keep the forex market stable as well as the non-resident Bangladeshis are encouraged to receive the benefit of a strong US dollar against the local currency,” a senior treasury official of a commercial bank said.
A total of $134 million has been bought from the commercial banks, so far, in the current fiscal year as part of the central bank's intervention in the market, the BB officials confirmed.
In fiscal 2009-10, the central bank bought a total of $2.16 billion directly from the commercial banks against $1.48 billion of the previous fiscal, the BB’s data showed.
BBN/SSR/SI/AD-24July10-5:36 pm (BST)
