Bangladesh Bank Purchases More Dollars to Stabilise Market

Bangladesh Bank has reinforced its active role in the foreign exchange market by purchasing 132 million US dollars from five commercial banks in the interbank spot market on Thursday. The latest intervention is aimed at stabilising the dollar-taka exchange rate amid ongoing pressures on the local currency.

Officials from the central bank explained that the transaction, conducted through a Multiple Price Auction mechanism, is designed to support export competitiveness, maintain steady remittance inflows, and strengthen the country’s foreign exchange reserves. The cutoff rate for this auction was fixed at 122.29 taka per US dollar, slightly higher than the 122.25 taka per dollar rate recorded in the previous auction on 30 November.

Since the introduction of the free-floating exchange rate system on 13 July, Bangladesh Bank has directly purchased a total of 2.41 billion US dollars from commercial banks. A senior official stated, “Our purchases of US dollars are intended to stabilise the exchange rate, thereby protecting export earnings and ensuring consistent remittance flows, which are crucial for economic stability.”

The central bank’s latest data show that Bangladesh’s gross foreign exchange reserves have risen to 31.20 billion US dollars as of 1 December, up from 31.12 billion on 27 November. When measured under the IMF’s BPM6 standard, reserves increased from 26.40 billion dollars to 26.51 billion dollars during the same period, signalling a gradual strengthening of the country’s external financial position.

Market analysts note that these interventions are part of Bangladesh Bank’s ongoing strategy to mitigate volatility in the exchange rate, maintain investor confidence, and ensure that exporters and remittance recipients have predictable access to foreign currency.

The key details of the latest transaction are summarised in the table below:

With continued interventions like these, Bangladesh Bank aims to maintain stability in the foreign exchange market while fostering an environment that supports sustainable growth in exports and remittance-dependent sectors.