Dhaka, Feb. 22 -- Forex reserves show a rebound as the dollar-taka-swap mechanism proves a boon for both the Bangladesh Bank and cash-strapped commercial banks amid liquidity stress in the country's banking sector.

This has clearly been manifest in the first two days' deals under the currency-swap arrangement between the country's central bank and the commercial banks.

According to BB sources, the central bank purchased US$390 million from the commercial banks under the swap in first two days of the special exchange arrangement meant for circumventing the crunch.

On the first day, February 20, the BB bought $155 million from the banks. The following official day on February 22, commercial lenders sold more than $235 million to the bank...