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Bangladesh Bank injects $2bn into forex market in 4 months - Dhaka Tribune

As part of the move to manage the money market, the central bank sold $30 million directly to three commercial banks

The Bangladesh Bank pumped $2 billion worth of US dollars during the last four months, into the local foreign exchange market, as the American currency is showing good demand amid recovery from the Covid-19 pandemic.

As part of the move to manage the money market, the central bank sold $30 million directly to three commercial banks on Thursday, adding up to the four-month tally.

A total of $143 million has been sold to different commercial banks during the first nine days of the current month, central bank data showed.

Also, a total of $2.17 billion has been sold from the country's forex reserves since August 18 of the current FY22 to the commercial banks as part of the central bank's ongoing support, according to latest official figures.

Meanwhile, the Bangladesh taka (BDT) had depreciated by Tk1 against the US dollar during the period under review despite the selling of the greenback by the central bank to the banks for keeping the market stable.

The US dollar was quoted at Tk85.80 on the inter-bank foreign- exchange market on the day--unchanged from the previous level. It was Tk84.80 on August 17 last.

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The actual import in terms of settlement of letters of credit (LCs) jumped by more than 51% to $23.38 billion during the July-October period of FY22 from $15.45 billion in the same period of the previous fiscal.

On the other hand, the opening of LCs, generally known as import orders, grew by more than 52% to $27.32 billion during the period under review from $17.94 billion in the same period of FY21.

The official figures show that the flow of inward remittance dropped by nearly 21% to $8.61 billion during the July-November period of FY22 from $ 10.89 billion in the same period of the previous fiscal.

However, the country's forex reserves have maintained a downturn in the last couple of months following lower flow of inward remittances and higher import-payment obligations.

Bangladesh's forex reserves dropped by $2.96 billion to $45.10 billion on Thursday from $48.06 billion this past August, BB data showed.