Sustainable foreign exchange intervention requires sell rates to exceed buy rates, but Bangladesh Bank does not imitate other central banks or open markets.
Bangladesh Bank will work with banks to monitor open markets, curb dollar appreciation and punish misguided bankers and currency dealers. But that seems to have backfired, at least for now.

The central bank has sold more than $1.6 billion from its reserves to resolve the ongoing crisis in the first 40 days of the current fiscal year 2022-23.But instead of abating, the crisis is intensifying.
Zobair Shihab of Dhanmondi came to Paltan’s exchange office Wednesday morning to buy $500 for his business trip to Singapore.

“None of Dhanmondi or Mirpur gave me it (US dollars). So I came to Paltan. But these people can only sell $200 now, and the rest will sell later this afternoon. Even if I agreed, the price in the afternoon would be different than it is now,” he said.
The money changers charged Shihab Tk 120 per dollar. This is his increase of Tk 10 since 7th August.
The curb market rate for the day reached Tk 119.90 while the interbank rate of Bangladesh Bank was pegged at Tk 95 and the difference between the two markets was a whopping Tk 25.Representative Photo Bigstock

Zahid Hussain, a former senior economist at the World Bank Dhaka office, told the Dhaka Tribune: “The curb market is developing in parallel, prompting police to step up. Central bank crackdown.” The number of dollar sellers has declined as the dollar has strengthened, but many customers want to trade at higher rates, fear gripping the market and many moneychangers refraining from trading.
On 4 August, Central Bank Governor Abdul Roof Tarukder called it a spade in terms of intervention to correct the exchange rate.

The governor assured that if the market stabilizes, the taka will fluctuate.
“Bangladesh Bank therefore appears to expect a sharp drop in international commodity prices, policy measures to reduce imports, and an increase in remittances and exports.
Export earnings in July decreased compared to June, but remittances hit a 14-month high, while LC (Letters of Credit) opening rate fell
Bangladesh Bank The opening of letters of credit (LCs), commonly known as import orders, was $6.58 billion in July, up from $7.53 billion last month, according to the latest data from . According to the data,
LC’s bill decreased by 9.23% in one month.
Banks also said he opened LCs worth $5.55 billion in July, down from $7.96 billion registered in June. As a result, the LC aperture was reduced by 30.20%.