The Bangladesh Bank has received approximately $1.48 billion from commercial banks under its currency swap arrangement since February 15. This agreement allows banks to exchange a specified amount of one currency for another at an agreed-upon rate on a specified date. Deposits under the swap dropped from $1.75 billion in March to the current level due to banks reclaiming dollars to meet market demands. Consequently, the country’s foreign exchange reserves, as per IMF’s BPM6, decreased to $19.8 billion on April 17. The net foreign reserves fell below $15 billion. Banks received about Tk 16,380 crore mostly for a thirty-day tenure. The swap arrangement permits banks to exchange taka for dollars with the central bank and reclaim their dollars after settling the taka and interest rates. The swap can range from seven to ninety days, with a minimum of $5 million or its equivalent. Interested banks must agree with the central bank to avail this facility.
Source for more details:
