BB buys $70m from banks in first purchase in nearly two months

After a gap of nearly two months, the Bangladesh Bank has purchased dollars from commercial banks through an auction. 

The central bank today (15 April) bought $70 million from commercial banks at a rate of Tk122.75, a senior official confirmed. 

Earlier this week, the central bank issued a verbal instruction to banks to purchase dollars from remittance houses at a maximum rate of Tk122.90.

Regarding this, a senior central bank official told The Business Standard, "The remittance rate is Tk122.90, while dollars were purchased from commercial banks via auction at Tk122.75. 

"This indicates that the Bangladesh Bank intends to reduce the dollar rate slightly further. Essentially, the central bank signaled to the market that the dollar rate should hover around Tk122.75."

Commenting on the matter, a senior official of a private bank told TBS, "There are sufficient dollars in the market. The central bank purchased dollars at this price to ensure the rate does not rise further, as inflation remains a major challenge for them. 

"High inflation has persisted in the country for a long time, and controlling it is the central bank's primary objective. Therefore, the central bank believes that by bringing down the dollar rate, it will be able to reduce inflation. This will also somewhat lower costs for importers."

Another senior official from a private bank said, "The price of the dollar began to rise following the start of the Iran war. The Bangladesh Bank has received information that several banks purchased dollars at higher prices because of this. It is expected that the dollar rate will decrease again in the coming days."