BB buys additional $134m from banks

Bangladesh Bank (BB) yesterday purchased $134 million from five commercial banks through multiple auctions as part of its ongoing strategy to contain the depreciation of the US dollar against the local currency, the taka.

The latest move comes after BB bought $948 million from commercial banks between July 13 and the end of August this year, reversing its earlier approach of selling dollars to curb the rapid depreciation of the taka and support state agencies in paying import bills.

Following yesterday's purchase, BB's greenback acquisitions from banks have crossed $1 billion since July, helping the dollar maintain its value amid steady inflows and subdued import demand.

The buying, along with increased exports and remittances, also bolstered the country's foreign exchange reserves, which stood at $26.19 billion on August 28 this year, up from $20.59 billion a year ago, according to BB.

Over the past three years, up to fiscal year 2024-25, BB sold more than $25 billion from its foreign exchange reserves, largely to cover import bills for fuel, fertiliser and food.

After the fall of the Awami League-led government in August last year during a mass uprising, the central bank suspended dollar support for government imports due to low foreign currency reserves.

Yesterday, the central bank set a cut-off rate of Tk 121.75 for its dollar purchase.

In interbank transactions, the greenback was traded at rates ranging from Tk 121.66 to Tk 121.78, with a weighted average of Tk 121.72.