BB buys more US dollars to support taka

The central bank purchased an additional US$60 million from four banks through an auction on the interbank spot market on Sunday, aiming to keep the exchange rate of the US dollar against the taka stable.
The amount was bought under the multiple price auction method, with a cut-off rate of Tk 122.30 per dollar, according to central bank officials.
The Bangladesh Bank (BB) has so far purchased $2.93 billion directly from banks since July 13 last year under the prevailing free-floating exchange rate regime, the central bank's latest data showed.
Speaking to The Financial Express, a senior BB official said the central bank's dollar purchases from scheduled banks are intended to stabilise the exchange rate, a move that helps maintain export competitiveness and support the continued inflow of remittances.
The liquidity position of several banks, including some troubled lenders, has improved as a result of selling US dollars to the central bank, the official said. He added that the intervention is also contributing to a gradual strengthening of the country's foreign exchange reserves.
Meanwhile, Bangladesh's gross foreign exchange reserves rose to $32.57 billion on December 18 from $32.48 billion a day earlier, based on the central bank's traditional calculation.
Under the International Monetary Fund's Balance of Payments and International Investment Position Manual, sixth edition (BPM6), the reserves stood at $27.87 billion during the same period, up from $27.82 billion, according to Bangladesh Bank data.

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