Dhaka, Bangladesh (BBN) - The central bank has intensified its intervention in the foreign exchange market through purchasing US dollars from commercial banks to keep the market stable.

Bangladesh Bank (BB) has taken the latest move to keep the rate of local currency stable against the greenback, officials said.

As part of the operation, the central bank has bought a total of US$ 62 million from the commercial banks this week. This move has helped to strengthen US dollar against the local currency.

"We may continue our open market operation to keep the market stable," a BB senior official told the FE, adding that the central bank is monitoring the country's overall forex market closely.

The Bangladesh Taka (BDT) has been depreciating since Monday, following the central bank's intensified intervention in the market.

The US dollar was quoted at Tk 69.27-69.28 in the inter-bank foreign exchange market Wednesday against Tk 69.26-69.27 in the days back, according to the central bank statistics.

Both the central bank and commercial bank officials said a stable local currency exchange rate is essential to maintain the inflow of remittances and export earnings.

"With the overall goal of benefiting the exporters and Bangladeshi expatriates, the BB is continuing its operation," a senior treasury official of a commercial bank told the FE.

A total of $1.973 billion was bought from the commercial banks since July 2, 2009, as part of the central bank's intervention in the market, central bank officials confirmed.

In the 2008-9 fiscal year, the central bank bought $1.511 billion directly from the commercial banks against only $202.50 million of the previous fiscal, Bangladesh Bank data showed.

BBN/SS/SI/AD-20May10-10:54 am (BST)