Dhaka, Bangladesh (BBN)- The Bangladesh Bank (BB) purchased US$104 million more through auction from 8 banks in the interbank spot market on Monday, as part of its ongoing effort to stabilize the exchange rate of the US dollar against the local currency.
The amount was bought under the Multiple Price Auction method, with rates ranging between BDT 121.78 and BDT 121.80 per dollar, according to central bank officials. The cutoff rate stood at Tk 121.80 per dollar, compared with Tk 121.75 at the previous auction held on September 22.
With the latest purchase, the central bank has so far bought $1.98 billion directly from banks since July 13 under the prevailing free-floating exchange rate arrangement, according to the BB’s latest data.
Talking to BBN, a BB senior official said the ongoing intervention in the foreign exchange market will continue to help keep the exchange rate of the US dollar against the Bangladesh Taka (BDT) stable.
He also said such intervention is supporting exporters and remitters while also contributing to an improvement in the country’s foreign exchange reserves.
Bangladesh’s gross foreign-exchange reserves rose to $31.68 billion on Monday from $30.50 billion a day earlier, based on the central bank’s traditional calculation.
However, as per the International Monetary Fund’s (IMF) Balance of Payments and International Investment Position Manual, sixth edition (BPM6), the reserves stood at $26.80 billion during the period under review, up from $26.62 billion previously.
BBN/SSR/AD