BB buys dollar again

Bangladesh Bank (BB) yesterday bought $107 million from commercial banks, three days after it purchased a nearly equivalent amount from the market to rebuild foreign exchange reserves and maintain stability in the exchange rate.

With the purchase of US dollars for the 14th time, the foreign exchange reserves of the central bank now stand at $27.12 billion.

The banking regulator bought the dollars from 10 banks through auctions at Tk 121.80, taking the total amount purchased to $2.08 billion during the current fiscal year.

BB, which sold more than $25 billion from its forex reserves to help cover imports of fuel, fertiliser, and food between FY21 and FY25, has begun purchasing the greenback since the start of this fiscal year as supply increased owing to higher exports and remittances.

Since early July, the taka has gained against the dollar.

On July 2, the dollar was traded at a maximum of Tk 122.85. The rate has since fallen to Tk 121.80.

Around $27 million was transacted in the spot market.

On October 6, the country's foreign exchange reserves stood at $26.79 billion, up from $21 billion in early October last year, according to BB.