BB buys $10 million through auction to boost taka

Bangladesh Bank has purchased another $10 million from commercial banks through an auction to boost dollar exchange rate against taka.

On 23 July, the central bank made this strategic move aimed to signal an upward trend for the depreciating US dollar in the local market.

A deputy governor of Bangladesh Bank confirmed the dollar purchase through the auction, stating that the cut-off rate for buying dollars from commercial banks on 23 July was set at Tk121.95.

Context of dollars purchases

This latest acquisition follows a series of interventions by the central bank. Previously, after the dollar's value plummeted by nearly Tk3 within a week, Bangladesh Bank made its first-ever dollar purchase through an auction on 13 July.

On that day, the central bank bought $173 million at a rate of Tk121.50. Following this, on 15 July, the central bank purchased an additional $313 million at the same rate through another auction.

Impact on the Market

These consecutive auctions, where dollars were bought at higher rates, subsequently led to an increase in the currency's value. On Wednesday, the dollar exchange rate in the remittance and interbank markets surpassed Tk122.

However, banks are charging up to Tk122.50 for settling import Letters of Credit (LCs).