BB raises buying US$ from banks

FE Team | Published: September 18, 2015 00:00:00 | Updated: November 30, 2026 06:01:00

FE Report
The central bank has boosted purchasing of the US dollar from banks to help keep the inter-bank foreign exchange (forex) market stable amid increased inflow of foreign currencies ahead of the Eid.
As part of the move, the Bangladesh Bank (BB) bought $125 million directly from nine commercial banks on Thursday to protect interests of exporters and migrant workers by keeping the exchange rate of the local currency against the greenback stable.
The US dollar was quoted at Tk 77.80 in the inter-bank forex market on the day, unchanged from the previous level, market operators said.
On Tuesday, the central bank similarly purchased $64 million from eight commercial banks on the same ground.
A total of $1.48 billion was bought from the commercial banks between July 2 and September 17 of the current fiscal year (FY), 2015-16, for offsetting its increased supply to the market.
The country's foreign exchange reserve crossed the $26 billion-mark again on Thursday following the US dollar purchase.
The reserve rose to $26 billion on the day, from $25.78 billion of the previous working day. It was $26.03 billion on August 17.
"The forex reserve crossed $26 billion again, mainly due to lower import payment obligations, following falling trend in commodities' prices in the gloal market, including that of petroleum product," a senior official of BB told the FE.
He also said the country will be able to settle more than seven months' import bills with the existing forex reserve.
"Higher inflow of remittance ahead of the Eid-ul-Azha along with steady growth of export earnings has contributed to increasing the country's forex reserve position."
He also expected that the remittance inflow may cross $1.20 billion by the end of this month, if the existing trend of inward remittance continues.
The country received $502 million as remittance between September 01 and September 11 from Bangladeshi nationals living and working abroad, BB data showed.
"We may continue buying of the US dollar from the banks in line with the market requirement," another BB official hinted.
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