Bangladesh Bank buys $700m in first 12 days of January
Today, the central bank bought $81 million from 10 commercial banks at an exchange rate of Tk122.30 per dollar
Bangladesh Bank has purchased $700 million from commercial banks through auctions during the first 12 days of January this year, as part of its ongoing intervention in the foreign exchange market.
The central bank's spokesperson and Executive Director Arief Hossain Khan confirmed the development today (12 January).
Bangladesh Bank bought $81 million from 10 commercial banks at an exchange rate of Tk122.30 per dollar today. With this latest purchase, the central bank's total dollar purchases from commercial banks in the current fiscal year have reached $3.83 billion.
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As part of its strategy to intervene in the foreign exchange market, Bangladesh Bank began buying dollars through auctions in July last year.
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, according to officials.
Bankers said 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.
