Central bank buys $ 3.0b from banks for forex mkt stability

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The central bank has so far bought more than US$ 3.0 billion from the commercial banks in the current fiscal year (FY), 2014-15, to help keep the inter-bank foreign exchange (forex) market stable, officials said.

“We’re purchasing the US dollars from the banks to protect the interest of the exporters and migrant workers by keeping the exchange rate of the local currency against the greenback stable,” a senior official at the Bangladesh Bank (BB) told the Guardin.

As part of the move, the BB bought US$ 25 million from two commercial banks at market rate on Thursday to offset the inflow of foreign exchange in the market.

The US dollar was quoted at Tk 77.80 in the inter-bank forex market, unchanged from the previous level, market operators said.

A total of $ 3.14 billion was bought from the commercial banks between July 2 and May 21 of the FY ’15 as part of the BB’s intervention in the market, the BB data showed.

The country’s foreign exchange reserve rose to $ 23.62 billion on Thursday from $ 23.56 billion of the previous day following the US dollar purchase.

The supply side of the foreign currency has improved recently due to higher inflow of remittance along with steady growth of export earnings, the BB official explained.

Bangladesh received $ 691.47 million as remittances between May 1 and May 15 from Bangladeshi nationals who are working abroad, according to the central bank’s latest statistics.

The remittances from Bangladeshi nationals working abroad were estimated at US$ 1.29 billion in April 2015, less by $ 44.58 million from the level of the previous month. In March last the remittances stood at $ 1.34 billion.
“We may continue purchasing the US dollar from the banks in line with the market requirement,” the central banker hinted.