A BB official said the central bank is trying to curb high inflation by appreciating the local currency to reduce import costs
Representational image. Photo: Collected
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Representational image. Photo: Collected
Bangladesh Bank purchased $30 million from commercial banks through an auction yesterday (3 May) at Tk122.75 per dollar, as part of its move to build foreign exchange reserves ahead of upcoming Asian Clearing Union (ACU) payment obligations.
A senior central bank official, requesting anonymity, confirmed the matter to The Business Standard.
“The central bank regularly purchases dollars from commercial banks before ACU payments. Bangladesh Bank is going to make an ACU payment of around $1.5 billion this month,” he said.
“Currently, the foreign exchange reserve stands at $30.47 billion,” the official added.
Another official said, “The central bank is concerned about high inflation and is trying to curb it. So, it is trying to appreciate the local currency, which makes import costs cheaper.”
A senior banker, on condition of anonymity, said remittance inflows have improved, with over $3 billion received in April, resulting in a strong dollar supply and prompting the central bank to purchase dollars from commercial banks.
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