Bangladesh Bank Bolsters Reserves With $115m Purchase

In a decisive move to preserve equilibrium within the national foreign exchange market, Bangladesh Bank has completed the acquisition of $115 million from three commercial institutions. The transaction, conducted through a formal auction on Sunday, 28 December, saw the greenback purchased at a standardised rate of 122.30 BDT. This intervention is part of a sophisticated regulatory effort to manage the local currency’s value while ensuring that the banking sector maintains sufficient liquidity to facilitate international trade.

The central bank’s activity throughout the final month of 2025 has been notably robust, as policymakers seek to insulate the economy against external shocks. Official records indicate that total dollar purchases for December alone have reached $920.50 million. This aggressive accumulation strategy is designed to replenish the nation’s “gross reserves,” which have faced scrutiny over the past year. By acting as a primary buyer during periods of market stability, the central bank is effectively building a financial fortress to support future import payments and debt servicing.

From a broader perspective, the scale of these interventions during the current fiscal year highlights a significant shift in monetary prioritisation. For the 2025–26 fiscal period to date, the central bank has absorbed a cumulative total of $3,046.50 million from the domestic market. Economists suggest that by maintaining the exchange rate at the 122.30 BDT mark, the regulator is providing much-needed predictability for the industrial sector, particularly for garment exporters and energy importers who rely on stable currency valuations for long-term planning.

Foreign Exchange Acquisition Data: FY 2025–26

Period / EventAcquisition Volume (USD)Exchange Rate (BDT)
Daily Auction (28 Dec)$115.00 Million122.30
Total for December 2025$920.50 MillionMarket Average
Fiscal Year To Date$3,046.50 MillionVariable
Participating Sellers3 Commercial BanksN/A

The auction mechanism serves a dual purpose: it allows the central bank to dictate the pace of reserve growth while providing commercial banks with a reliable outlet to offload excess foreign holdings. This prevents the Taka from appreciating too rapidly, which could potentially hurt the competitiveness of Bangladeshi exports on the global stage. As the country moves into the second half of the fiscal year, the central bank’s disciplined approach to currency management remains a cornerstone of its strategy to maintain macroeconomic stability and investor confidence in a volatile global environment.

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