The Bangladesh Bank has strengthened its intervention in the foreign exchange market, purchasing US$132 million from five banks in the interbank spot market on Thursday to help stabilise the dollar-taka exchange rate.
The move comes amid continued pressure on the local currency and a broader effort to smooth volatility under the free-floating regime.
Officials said the latest purchase, conducted through a Multiple Price Auction, reflects the central bank's ongoing attempt to support export competitiveness and maintain steady remittance inflows.
The operation also contributes to rebuilding foreign exchange reserves, which have edged up in recent days.
The amount was bought at a cutoff rate of Tk 122.29 per dollar, according to central bank officials. The cutoff rate at the previous auction, held on November 30, was Tk 122.25 per dollar.
Bangladesh Bank (BB) has so far purchased $2.41 billion directly from banks since July 13 under the prevailing free-floating exchange rate arrangement, central bank data show.
"We're purchasing US dollars from banks to help stabilise the exchange rate, which in turn supports export earnings and inward remittance flows," a senior BB official told The Financial Express, explaining the main rationale behind the intervention in the foreign exchange (forex) market.
He added that the intervention is also helping to strengthen the country's foreign exchange reserve position.
Meanwhile, Bangladesh's gross forex reserves rose to $31.20 billion on December 1 from $31.12 billion on November 27, according to the central bank's traditional calculation.
Under the International Monetary Fund (IMF)'s Balance of Payments and International Investment Position Manual, sixth edition - commonly known as BPM6 - the forex reserves stood at $26.51 billion during the same period, up from $26.40 billion, according to the central bank's latest statistics.
siddique.islam@gmail.com
