Bangladesh Bank buys $10 million through auction to boost taka
Staff Correspondent
Bangladesh Bank has purchased another US $10 million from commercial banks through an auction to boost dollar exchange rate against taka.
On July 23, the central bank made this strategic move aimed to signal an upward trend for the depreciating US dollar in the local market.
A deputy governor of Bangladesh Bank confirmed the dollar purchase through the auction, stating that the cut-off rate for buying dollars from commercial banks on July 23 was set at Tk 121.95.
Context of dollars purchases:
This latest acquisition follows a series of interventions by the central bank. Previously, after the dollar's value plummeted by nearly Tk 3 within a week, Bangladesh Bank made its first-ever dollar purchase through an auction on July 13.
On that day, the central bank bought $173 million at a rate of Tk 121.50. Following this, on July 15, the central bank purchased an additional $313 million at the same rate through another auction.
Impact on the Market:
These consecutive auctions, where dollars were bought at higher rates, subsequently led to an increase in the currency's value. On Wednesday, the dollar exchange rate in the remittance and interbank markets surpassed Tk 122.
However, banks are charging up to Tk 122.50 for settling import Letters of Credit (LCs).
