Bangladesh Bank (BB) has purchased $484 million from commercial banks this week in a move aimed at stabilizing exchange rates.
On Tuesday, 15 July, the central bank bought $373 million from 22 banks, following a $171 million purchase earlier in the week. This comes after four consecutive days of declining dollar prices.
The highest rate on Tuesday was Tk 121.50, a rise of 1.40 Taka from Monday’s rate of Tk 120.10. The average exchange rate for the day stood at Tk 121.11, with the lowest rate at Tk 120.80.
Bangladesh Bank spokesperson Arif Hossain Khan confirmed that the purchased dollars would be added to the country’s foreign exchange reserves on Wednesday, 16 July.
The move is part of the central bank’s ongoing strategy to manage the Taka’s value and prevent further depreciation of the dollar, he added.
Economists have raised concerns about the dollar purchase by the central bank as some believe that keeping the dollar at its current price may slow the inflation curbing process, suggesting that a lower dollar price could accelerate inflation reduction in Bangladesh’s import-dependent economy.
However, the effects of the dollar price increase have yet to be seen in the open market, where prices have remained steady.
Analysts attribute the increase in dollar supply to a slowdown in imports, higher exports, and improved remittance inflows.
