Bangladesh Bank has sold more than $25 billion from its foreign exchange reserves in the last three years, mainly to pay for import bills for fuel, fertilizer and food. As a result the dollar reserves of the Bangladesh Banks have decreased significantly. In view of this, Bangladesh Bank is buying 1 billion dollars to keep the dollar reserves stable and as the dollar’s value against taka weakens due to a decrease in import flows.
Economists believe that if the dollar is not kept last, the evidence of a weak dollar and a slowdown in exports will harm the Bangladesh economy, so they believe that the Bangladesh Bank’s decision to purchase 1 billion dollars is reasonable. According to a source, Bangladesh Bank Purchased $948 million from commercial banks through seven auctions between July 13 to August, which helped the country overcome the economic downturn and meet import bills.
When the dictatorial Awami League government was overthrown in a popular uprising in August last year, foreign exchange reserves were greatly reduced due to money laundering and looting by the Awami League government, and Bangladesh Bank suspended dollar support for government imports. Subsequently, through the prudent wisdom and advanced measures of the interim government, the revenue effect began to be successful in restoring the reserves of the Bangladesh Bank, with higher than normal income and improved export earnings. And since March this year, the central Bank has started to buy dollars again as the rate of depreciation of Taka has slowed.
According to the central bank, the value of the dollars in Bangladesh is now 121.72 taka. A central bank official said that despite the market-based exchange rate, if the rate per dollar goes above 123 taka or below 121 taka it will intervene by maintaining the exchange rate band. According to IMF data Bangladesh reserves are now $26.19 billion, up from $20.69 billion last year. Essentially, the right steps of the interim government and high foreign exchange remittance income are greatly helping to restore the Bangladesh reserves.
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