Dhaka, Bangladesh (BBN) - The central bank purchased US$50 million more through auction from four banks in the interbank spot market on Thursday aiming to keep the exchange rate of the US dollar against the local currency stable.
The amount was bought under the Multiple Price Auction method and the cutoff rate was BDT 122.75 per dollar, according to the central bank officials.
Just a day before, the Bangladesh Bank (BB) resumed dollar purchases after a six-week pause, signalling renewed intervention to stabilise the exchange rate of the US dollar against the local currency amid a surge in remittance inflows.
The central bank purchased $70 million on Wednesday from a Shariah-based bank in a similar auction.
The central bank of Bangladesh has so far bought $5.61 billion from banks directly since July 13 last under the prevailing free-floating exchange rate arrangement, the central bank’s latest data showed.
The inflow of US dollars has increased in recent months due to lower import payment obligations and a stronger flow of inward remittances, according to market operators.
They also said such intervention will help keep the exchange rate stable despite the ongoing geopolitical tensions.
BBN/SSR/AD