Dhaka, Bangladesh (BBN) – The central bank of Bangladesh has sold US$30 million more to 11 banks directly to minimise the mismatch between demand and supply of foreign exchange in the market.
“We’ve provided the foreign exchange support to the banks on Thursday to meet the demand for the greenback in the market,” a senior official of the Bangladesh Bank (BB) told the BBN in Dhaka.
He also said such support helped the banks to settle their outstanding letters of credit (LCs) against imports particularly fuel oil, food grains and capital machinery.
“Such liquidity support will continue in line with the market requirement,” the central banker said, adding that the central bank is monitoring the overall foreign exchange (forex) market situation closely.
The central bank has resumed providing the foreign exchange support in the recent months through selling of the US currency to the banks directly to keep the market stable.
A total of $756 million was sold since July 01 of this fiscal year, 2017-18, to the commercial banks as part of its ongoing support, according to BB’s latest data.
The market operators said the demand for the US dollar is gradually increasing, mainly due to higher import payments pressure, particularly of capital machinery, petroleum products and consumer items including food grains.