Written by The Banking Post
Bangladesh Bank has purchased another $89 million from banks through an interbank spot auction, continuing its efforts to keep the exchange rate of the US dollar stable against the taka.
The purchase was made on Tuesday under the multiple price auction method, with a cut-off rate of Tk 122.30 per dollar. Seven banks participated in the auction, according to central bank officials.
Data show that since July 13, the central bank has bought a total of $3.13 billion from scheduled banks under the prevailing free-floating exchange rate regime.
A senior central bank official said the intervention aims to support exporters and remittance earners by maintaining exchange rate stability. He added that liquidity conditions at several banks, including weaker ones, have gradually improved as they sold dollars to the central bank.
The continued purchases have also helped strengthen the country’s foreign exchange reserves. Under the central bank’s traditional accounting method, gross reserves rose to $32.80 billion on December 24 from $32.72 billion two days earlier.
However, using the International Monetary Fund’s Balance of Payments and International Investment Position Manual, sixth edition (BPM6), reserves increased to $28.11 billion from $28.04 billion over the same period.
