Dhaka, Bangladesh (BBN)- Bangladesh Bank (BB) purchased an additional US$81 million from 10 banks through an interbank spot market auction on Monday, aiming to keep the exchange rate of the US dollar against the taka stable.
The dollars were bought under the Multiple Price Auction method at a cutoff rate of BDT 122.30 per dollar, central bank officials said.
The latest intervention came amid a sharp rise in inward remittances during the first 11 days of the current month. Remittance inflows jumped by more than 81 per cent year-on-year to $1.34 billion during January 1–11, compared with $737 million in the same period last year.
“We are purchasing US dollars directly from banks to absorb the excess inflow of remittances ahead of the upcoming national polls and the holy month of Ramadan,” a senior central banker said, explaining the current market dynamics.
According to the official, such intervention helps maintain exchange rate stability, which in turn encourages exporters and remitters.
Under the prevailing free-floating exchange rate regime, the central bank has so far bought $3.83 billion from banks since July 13 last year, BB data showed.
The continued intervention is also supporting a gradual improvement in the country’s foreign exchange reserves, the official added. Bangladesh’s gross forex reserves rose to $32.55 billion on January 12 from $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.
BBN/SSR/AD