The Bangladesh Bank has continued its proactive intervention in the foreign exchange market as part of a broader strategy to maintain stability and restore confidence among exporters and expatriate income earners. In its latest move, the central bank purchased a further US$141 million from commercial banks, underscoring its determination to keep the exchange rate within a disciplined and predictable range.
The dollar purchase was completed on Monday, 15 December, through a structured auction involving 13 commercial banks. According to officials familiar with the transaction, the acquisition was carried out at rates ranging narrowly between Tk 122.29 and Tk 122.30 per US dollar. The cut-off rate was set at Tk 122.30, signalling the central bank’s intent to curb excessive volatility and reinforce orderly market behaviour. The limited spread between bid prices reflects Bangladesh Bank’s close monitoring of the market and its preference for gradual, well-calibrated adjustments rather than abrupt shifts.
The auction was conducted under the Multiple Price Auction (MPA) system, which allows participating banks to submit bids at different prices within a specified range. This mechanism is designed to enhance transparency, encourage market-based price discovery and discourage speculative activity or manipulation. By relying on a structured and rules-based process, the central bank aims to strengthen confidence in the integrity of the foreign exchange market.
Earlier in the same week, on Monday, 11 December, Bangladesh Bank had purchased an even larger amount of US$149 million from 16 banks. During that auction, dollar prices ranged from Tk 122.25 to Tk 122.29, with the cut-off rate fixed at Tk 122.29. The close alignment of rates across consecutive auctions highlights the authorities’ commitment to a steady and controlled approach, preventing sudden spikes or sharp declines in the value of the taka.
Since the introduction of the auction-based dollar purchase mechanism on 13 July, Bangladesh Bank has bought approximately US$2.80 billion in the current 2025–26 fiscal year. Central bank officials note that the primary objectives of this policy are to ensure adequate foreign currency liquidity, support legitimate import payments and safeguard the external sector amid ongoing global economic uncertainty.
Economists observe that sustaining steady inflows of remittances and export earnings is crucial for maintaining balance-of-payments stability. By purchasing dollars directly from commercial banks, the central bank is not only reinforcing its foreign exchange reserves but also sending a clear signal to the market that exchange rate movements will remain orderly and predictable. This, they argue, reduces the risk of sudden depreciation or excessive appreciation of the dollar, while encouraging expatriates to remit funds through formal banking channels.
Market analysts expect Bangladesh Bank to continue such measured and need-based interventions in the coming months. The scale and timing of future auctions are likely to be adjusted in line with both domestic conditions and global developments, with the overarching aim of preserving stability in the foreign exchange market and restoring broader economic confidence.