The central bank purchased US$ 665 million from banks in the last two weeks to help keep the inter-bank foreign exchange market stable before the Eid-ul-Fitr festival.
The Bangladesh Bank (BB) bought the US currency directly from the commercial banks in the first 15 days of July, the first month of the current fiscal year (FY) 2015-16, as it seeks to rein in the potential volatility in the inter-bank foreign exchange (forex) market.
"We've expedited the purchase of the US dollar from the banks to maintain a balance between supply and demand as the flow of the inward remittances increased ahead of Eid," a BB senior official explained.
Bangladesh received $ 599.59 million as remittances between July 1 and July 10 from Bangladeshi nationals who are working abroad, according to the central bank's latest statistics.
The central banker also said such purchase helps the banks comply with the net open position (NOP) rules for holding foreign exchange properly.
Talking to the FE, another BB official said the central bank is purchasing the US dollar from the banks continuously to protect the interests of both exporters and migrant workers with keeping the exchange rate of Bangladesh Taka (BDT) against the greenback stable.
As part of the move, the BB bought $ 105 million from commercial banks Thursday, the last working day before the Eid-ul-Fitr festival, on the same grounds.
"The central bank may continue buying the US dollar from the commercial banks in line with the market requirement," the BB official hinted.
The country's foreign exchange reserves rose to $ 25.19 billion on Thursday from $ 25.03 billion on the previous day after the US dollar purchase.
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