Bangladesh Bank buys over $3 billion in six months
The central bank bought these dollars from seven commercial banks
To keep the country's foreign exchange market stable, Bangladesh Bank has purchased a further $89 million from commercial banks through auction, bringing its total dollar purchase to $3.13 billion in the current fiscal year.
The central bank bought these dollars from seven commercial banks at a rate of Tk122.30 per dollar today (30 December).
As part of its strategy to intervene in the foreign exchange market, Bangladesh Bank began buying dollars through auctions in July this year.
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Under the market-based exchange rate system, the central bank's goal is to maintain balance in the foreign exchange market, allowing the dollar price to fall when supply exceeds demand, and permitting prices to rise when demand increases.
Bankers say there are several reasons for the recent decline in dollar demand. With the government's large foreign payment obligations falling, demand for foreign currency has decreased. At the same time, sluggish business activity and weaker investment have reduced imports of capital machinery.
