Written by The Banking Post
Bangladesh Bank moved again to support the taka, buying an additional US$60 million from four banks through an interbank spot market auction on Sunday.
The purchase was conducted under a multiple-price auction, with a cut-off rate of Tk 122.30 per dollar, central bank officials said, as the regulator seeks to keep the exchange rate stable.
Since the adoption of the free-floating exchange rate regime in mid-July last year, the central bank has bought $2.93 billion directly from banks, according to official data.
A senior official said the dollar purchases are aimed at smoothing exchange rate volatility, helping preserve export competitiveness and sustain remittance inflows. The sales have also eased liquidity pressures at several banks, including some weaker lenders, while gradually bolstering foreign exchange reserves.
As a result, gross foreign exchange reserves rose to $32.57 billion on December 18 from $32.48 billion a day earlier under the traditional calculation method. Under the IMF’s BPM6 standard, reserves stood at $27.87 billion, up from $27.82 billion, Bangladesh Bank data showed.
