TDS Desk:

Bangladesh Bank has bought a total of $995 million from commercial banks over the past one and a half months through eight dollar auctions, as part of its efforts to stabilise the exchange rate and support remittance and export flows.

Bangladesh Bank has purchased $47.5 million from eight commercial banks through a multiple price auction, reinforcing its intervention in the foreign exchange market to stabilise the taka and support remittance and export inflows.

The auction was held when the central bank bought the greenback at rates ranging between Tk121.70 and Tk121.75, with the cut-off set at Tk121.75, said Bangladesh Bank Executive Director and spokesperson Arief Hossain Khan.

With this, the central bank’s total dollar purchase from commercial banks over the past one and a half months has reached $995 million through eight auctions.

Bangladesh Bank launched the auction mechanism on July 13, when it bought $171 million at Tk121.50. This was followed by $313 million on July 15 at the same rate.

On July 23, the central bank bought another $10 million at a higher cut-off of Tk121.95. It purchased $45 million more on August 7 at Tk121.35-121.50, and $83 million on August 10 at Tk121.47-121.50.

Continuing its intervention, the central bank on August 28 bought $149.5 million at a cut-off of Tk121.70.

According to the latest data, Bangladesh’s foreign exchange reserves stood at $31.39 billion in gross terms and $26.40 billion under the BPM6 accounting method as of September 2.

Officials said the central bank’s dollar purchases are aimed at containing volatility in the forex market while ensuring adequate liquidity for banks handling remittance and export settlements.