Bangladesh Bank sells $8.0m more to six banks

Last updated: February 15, 2018

Dhaka, Bangladesh (BBN)- The central bank of Bangladesh has sold US$8.0 million more to six commercial banks to meet the growing demand for the greenback in the market.

“We’ve sold the foreign currency to the banks on Wednesday at market rate to settle outstanding letters of credit (LCs) against imports particularly fuel oil, food grains and capital machinery for power sector,” a senior official of the Bangladesh Bank (BB) told the BBN in Dhaka.

The US dollar was quoted at BDT 82.92 in the inter-bank forex market on the day against BDT 82.90 of the previous working day, according to the market operators.

On Monday, BB similarly sold $20 million to different banks on the same ground.

The central bank of Bangladesh has resumed giving the support in the recent months through selling the US currency to the banks directly to keep the market stable.

A total of $1.41 billion was sold to the commercial banks since July 01 of this fiscal year, 2017-18, as part of its ongoing support, according to BB’s latest data.

The central bank may continue providing such foreign currency support to the banks in line with the market requirement, the central banker hinted.

Bangladesh’s forex reserve rose to $32.89 billion on Wednesday from $32.81 billion of the previous level despite selling the US dollar to the banks.

“Higher inflow of remittance along with overseas development assistance has contributed to boost the forex reserve,” the BB official added.

Bangladesh received $375.78 million as remittance between February 01 and February 09 from its nationals working abroad, according to the BB statistics.

The amount of remittance from the Bangladeshi expatriates was $1.38 billion in January 2018, up by $215.97 million than that of the previous month. In December 2017, the amount was $1.16 billion.

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