BB sells $123m to commercial banks

The central bank has expedited its foreign-currency liquidity support to scheduled banks for reining in volatility of the country's foreign-exchange (forex) market.
As part of the move, Bangladesh Bank (BB) sold US$123 million directly to nine commercial banks on Tuesday to meet the growing demand for the greenback in the market.
"We've sold the US currency to the banks for settling their import payment obligations," a senior official of the Bangladesh Bank (BB) told the FE.
He also said the central bank has strengthened its foreign currency liquidity support to the banks for reducing mismatch between inflow and outflow of the foreign exchange in the market.
The central bank has so far sold $5.95 billion from the reserves directly to the commercial banks as liquidity support for settling their import-payment obligations in the current fiscal year (FY), 2021-22.
Such liquidity support is being used for settling import-payments, particularly for six essential items, including fuel oils.
Other items are LNG (liquefied natural gas), food-grains, fertilizers, coronavirus vaccines and electricity, according to the officials.
"We may continue providing such foreign currency support to the banks in line with the market requirement," the central banker noted.
The US dollar was quoted at maximum of Tk 89.15 each for the sale of bills for collection, generally known as BC, on the day--unchanged from the previous level.
"Excepting for one or two, banks quoted their announced rates for customers both exporters and importers," senior treasury official at a leading private commercial bank (PCB) told the FE while explaining the latest market situation.
The US currency was quoted at Tk 88.15 on the day remained unchanged from the previous level for telegraphic transfer (TT) clean, which is applicable for commercial remitters.
The Bangladesh Taka (BDT) is maintaining a depreciating mode against the US currency mainly due to higher outflow of foreign exchange following 'hefty growth' in import payments compared to the inflow in the last few months.

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