Bangladesh Bank buys more dollars at auction

The dollars have been bought at rates between Tk 121.47 and Tk 121.50

Bangladesh Bank has bought another $83 million from 11 banks in an auction to “keep the dollar market stable”.

The dollars were bought at rates between Tk 121.47 and Tk 121.50 on Sunday.

It was the fifth round of dollar withdrawals from the market since the central bank made dollar trading market-based.

Arief Hossain Khan, a spokesperson and executive director of the central bank, said the move was aimed at controlling the dollar market, which has helped keep the rates of major foreign currencies steady.

On Thursday, Bangladesh Bank bought $5 million from commercial banks at rates ranging from Tk 121.35 to Tk 121.50.

Earlier, the central bank had purchased about $500 million from commercial banks in three phases at different prices.

In total, Bangladesh Bank has bought $628 million.

Bankers say the auctions, combined with an increase in remittance and export flows, are helping boost foreign currency reserves.

Earlier, BB Governor Ahsan H Mansur said more dollars would be purchased in the future if needed.

In May, following recommendations from the International Monetary Fund, the central bank moved to a market-based dollar rate.

Mansur later said the shift was made not under IMF pressure but in response to market conditions.

According to data released by the central bank on Sunday, reserves stood at $25.23 billion under the IMF’s BPM6 method, and $30.24 billion in gross terms.

The latest dollar purchases will be added to Monday’s reserve figures, the spokesperson said.

As of Wednesday last week, reserves were $25.05 billion under the BPM6 method.