BB buys record $5.15b from banks in FY ’14

The central bank purchased a record amount of $5.15 billion from the commercial banks directly in the just concluded fiscal year (FY) 2013-14 to keep the inter-bank foreign exchange (forex) market stable, officials said Monday.
The amount was the highest in the last 10 years followed by $4.54 billion in FY 13, according to the Bangladesh Bank (BB) statistics.
The BB bought the US currency in last two consecutive fiscal years but did not sell any single US dollar in the market. The central bank sold maximum $1.28 billion in FY 11 to meet the demand for the greenback in the market.
"We've purchased the greenback from the banks continuously to protect the interests of exporters and migrant workers by keeping the exchange rate of the Bangladesh Taka (BDT) against the US dollar stable," a BB senior official told FE.
As part of the move, the central bank bought $36 million from two commercial banks Monday, the last working day of the FY 14 as part of its intervention in the market, the BB official added.
The country's forex reserve reached $21.47 billion Sunday from $21.42 billion of the previous day, following the purchase of last chunks of greenback, according to the BB official.
Talking to the FE, a senior treasury official of a leading private commercial bank said higher export earnings and stable trend of both import payment and inward remittance have contributed to improvement in supply of foreign exchange in the market during the FY 14.
"The government should create enabling investment environment for ensuring proper use of the foreign currency," the private banker noted.
Country's export earnings grew by 12.56 per cent to $27.38 billion in the first 11 months of the outgoing fiscal year, compared to the same period a year ago, according to the state-run Export Promotion Bureau (EPB).
The government has set an export target of $30.5 billion for fiscal year FY 15, which has begun today (July 01).