Bangladesh Bank buys over $2b from commercial banks in 3 months

Highlights

• BB buys $2.08bn in 3 months via 14 auctions.
• $107m purchased Thursday at Tk121.80 per dollar.
• Buying started 13 July amid higher remittance, exports.

The Bangladesh Bank has purchased more than $2 billion from commercial banks over the past three months through 14 auctions, as remittance and export earnings continue to strengthen the country's foreign currency inflow.

Speaking to The Business Standard today (9 October), Bangladesh Bank Executive Director and spokesperson Arief Hossain Khan said, "So far, a total of $2.088 billion has been purchased through auctions in the last three months."

He added that the central bank bought $107 million from 10 commercial banks today at a rate of Tk121.80 per dollar through its latest auction.

Earlier on 6 October, the Bangladesh Bank bought $104 million in a similar auction.

The central bank began purchasing dollars through auctions on 13 July this year after a steady increase in foreign exchange supply, mainly due to rising remittance inflows and export earnings.

BB buys $104m to steady dollar, total purchase reaches $1.98b since July

According to bankers and economists, the move aims to maintain stability in the exchange rate. Bangladesh Bank is buying dollars from commercial banks to prevent the taka from appreciating too much.

While a sharp rise in the dollar rate is harmful, a sharp fall can also hurt the economy, economists noted.

BB buys more dollars in auction. How it’s impacting economy?

The dollar purchase also benefits remittance senders and exporters, as it helps maintain a favourable exchange environment. At the same time, the central bank's purchases are contributing to rebuilding the country's foreign exchange reserves.