The central bank purchased a further US$196.50 million through auction from 16 banks on the interbank spot market on Thursday, aiming to keep the exchange rate of the US dollar against the local currency stable.
The amount was bought under the Multiple Price Auction method, with the cut-off rate set at Tk 122.30 per dollar, according to Bangladesh Bank (BB) officials.
The BB's latest intervention in the foreign exchange (forex) market came amid a stronger inflow of inward remittances during the first four days of the current month.
Inward remittances rose by nearly 20 per cent to $506 million during February 1-4 this year, compared to $422 million in the same period last year.
"We are purchasing US dollars directly from banks to offset the higher inflow of remittances ahead of the upcoming national polls and the holy month of Ramadan," a senior BB official told The Financial Express, explaining the latest market situation.
The central banker also said such intervention helps keep the exchange rate of the US dollar against the local currency stable, which in turn encourages both exporters and remitters.
According to the central bank's latest data, Bangladesh Bank has so far purchased $4.52 billion directly from banks since July 13 last year under the prevailing free-floating exchange rate arrangement.
Such intervention is also contributing to a gradual strengthening of the country's foreign exchange reserves, the official added.
Meanwhile, Bangladesh's gross foreign exchange reserves rose to $33.24 billion on February 2 this year from $33.18 billion on January 29, according to the central bank's traditional calculation.
Under the International Monetary Fund's Balance of Payments and International Investment Position Manual, sixth edition (BPM6), the country's forex reserves stood at $28.75 billion during the period under review, up from $28.68 billion earlier.
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