Dhaka, April 19 -- Bangladesh Bank (BB) has explained why it has re-entered the dollar market after a month and a half, saying that it "intervened" in the foreign exchange market to increase reserves amid an easing of pressure in paying foreign liabilities and an increase in remittance flow.

On Apr 15, the central bank bought $70 million from a private Islamic bank at a rate of Tk 122.75. The next day, it bought $50 million from four more banks at the same rate.

On both days, the interbank exchange rate for the dollar was TK 122.70.

Explaining the move, Bangladesh Bank spokesperson and Executive Director Arif Hossain Khan told bdnews24.com on Monday that the central bank had stayed out of the foreign exchange market for some time becau...