Bangladesh Bank Releases Report on Money Market Management

The Bangladesh Bank has released its report about its latest efforts to manage the South Asian country’s money market. The central bank of Bangladesh has sold US$30 million directly to three commercial banks last Thursday, December 9.

This measure is a component of the move to manage the country’s money market, adding up to the four-month calculation. We want to share this latest foreign exchange-related report with our readers.

We believe they will be informed properly about the currency markets and how the latter would affect the currencies they are holding, especially if they will be exchanging the Bangladeshi taka with the US dollar this week.

Based on the news posted online by Bangladesh-based broadsheet Dhaka Tribune, the Bangladesh Bank pumped US$2 billion into the foreign exchange market in the last four months.

This US dollar-denominated funds’ injection happened as the official currency of the United States is presently demonstrating positive demand amid the world’s largest economy’s recovery from the coronavirus or COVID-19 pandemic.

The Bangladesh Bank’s data demonstrated that, during the first nine days of this month, a total of US$143 million had been sold to different commercial banks. 

Furthermore, a total of US$2.17 billion had been sold from Bangladesh’s foreign exchange reserves since August 18 of the current fiscal year 2022 to the commercial banks as part of the central bank’s ongoing support per the latest official figures.

As for the Bangladeshi taka, it had depreciated by 1 taka versus the US dollar. This status of the official currency of the People’s Republic of Bangladesh happened during the period under review, despite the selling of the greenback by the Bangladesh Bank to the banking institutions for keeping the market stable.

Meanwhile, the US dollar was quoted at 85.80 takas on the inter-bank foreign exchange market on the day. This figure is unchanged from the previous level, which was 84.80 takas on August 17.

In the last couple of months, Bangladesh’s foreign exchange reserves have kept a downturn. This event happened after the lower flow of inward remittances and higher import-payment obligations. Bangladesh’s foreign exchange reserves plummeted by US$2.96 billion to US$45.10 billion on Thursday.

The Bangladesh Bank’s data showed these figures are from US$48.06 billion this past August. We think the Bangladesh Bank’s report indicates that Bangladesh’s central bank is working towards making this country’s currency markets stable.

This event comes as the South Asian country, similar to the rest of the world, recuperates from the coronavirus or COVID-19 pandemic and other related global events tremendously impacting the foreign exchange markets. 

With its proactive stance, we think the Bangladesh Bank can help the Bangladeshi national currency stay afloat despite the current events and the Bangladeshi people as well.

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