The central bank of Bangladesh has purchased an additional US$40 million through an auction in an effort to maintain stability in the country’s foreign exchange market, according to official confirmation.
The information was disclosed on Thursday by Arif Hossain Khan, Executive Director and spokesperson of the central bank. The latest intervention reflects ongoing policy measures aimed at managing liquidity conditions in the foreign currency market and preventing excessive volatility in the exchange rate.
The dollars were acquired from five commercial banks participating in the auction process. The cut-off rate for the transaction was set at Tk 122.75 per US dollar, indicating the price level at which the central bank was willing to absorb foreign currency from the market.
This move is part of a broader series of foreign exchange operations undertaken in the current fiscal year 2025–26. The central bank has repeatedly entered the market through auction-based purchases to balance supply and demand pressures, particularly as remittance inflows, import payments, and external financing conditions fluctuate.
In May alone, the institution has purchased a cumulative US$210 million so far, signalling active intervention during a period of sustained market adjustment. Over the wider fiscal year, the total volume of US dollars acquired through auction mechanisms has reached 5.8835 billion, underscoring the scale of monetary operations conducted to stabilise the currency environment.
Officials suggest that such interventions are designed to smooth short-term volatility rather than alter long-term exchange rate fundamentals. The central bank typically steps in when excess foreign currency supply emerges in the banking system, allowing it to absorb dollars while supporting liquidity management objectives.
Overview of recent foreign exchange purchases
| Period / Category | Amount Purchased (USD) | Equivalent Context / Notes |
|---|---|---|
| Latest auction operation | 40 million | Purchased from 5 commercial banks |
| May 2025–26 (to date) | 210 million | Cumulative monthly purchases |
| FY 2025–26 total | 5.8835 billion | Total auction-based acquisitions |
The continued accumulation of foreign currency through such auctions reflects the central bank’s active role in managing exchange rate pressures amid evolving macroeconomic conditions. Analysts view these operations as part of a wider strategy to maintain orderly market functioning while ensuring that banks retain sufficient liquidity to meet import and payment obligations.
Overall, the latest purchase highlights ongoing efforts by the Bangladesh Bank to reinforce stability in the foreign exchange market through calibrated and data-driven interventions.