The Bangladesh Bank has purchased an additional 149 million US dollars through an auction process as part of its ongoing efforts to manage the foreign exchange market in a systematic manner. The foreign currency was collected from 16 commercial banks operating across the country. The information was disclosed on Thursday, 11 December, by the central bank’s spokesperson, Arif Hossain Khan. He explained that the decision to purchase dollars was taken after carefully assessing the prevailing supply situation in the foreign exchange market and described the move as a regular element of Bangladesh Bank’s market management operations.
According to the spokesperson, the current condition of the foreign exchange market indicates that the supply of US dollars is higher than overall demand. In such a situation, Bangladesh Bank began purchasing dollars from July with the aim of protecting the interests of exporters and expatriate income earners, while at the same time maintaining stability in the exchange rate of the dollar. He noted that the initiative has contributed to sustaining balance in the foreign exchange market and has helped reduce the risk of sudden and abnormal fluctuations in the dollar’s value. Based on the data provided by the central bank, a total of 2.663 billion US dollars has been purchased so far under this ongoing programme.
The most recent purchase was conducted under the supervision of the Bangladesh Bank’s Foreign Exchange Auction Committee using the multiple price auction method. Under this system, the price per US dollar ranged between Tk 122.25 and Tk 122.29. Central bank sources stated that the multiple price auction mechanism allows the purchase of dollars at different prices, which helps ensure that price determination remains aligned with actual market conditions. This approach also makes it possible to collect foreign currency without creating artificial shortages or exerting excessive pressure on the market.
Prior to this latest auction, Bangladesh Bank had carried out dollar purchases in phases on several occasions. On 13 July, the central bank collected 171 million US dollars from 18 commercial banks at a rate of Tk 121.50 per dollar. On 15 July, another 313 million dollars were purchased at the same exchange rate. Subsequently, on 23 July, Bangladesh Bank bought an additional 10 million dollars at a rate of Tk 121.95 per dollar.
In addition, significant amounts of dollars were purchased on 7, 10, 14 and 28 August; on 2, 4, 9, 15 and 22 September; on 6, 9 and 24 October; and most recently on 9 December, at different exchange rates. The primary objective of these purchases was to maintain stability in the foreign exchange market and to prevent the dollar rate from falling abnormally as a result of excess supply.
Bangladesh Bank sources said that this continuous dollar-buying initiative has enabled exporters and expatriate income earners to receive fair value for their foreign currency earnings. At the same time, a natural balance in the dollar exchange rate has been maintained in the market. Officials concerned also indicated that the central bank will continue to review market conditions and, if necessary, carry out similar auction operations in the future as part of its ongoing market management strategy.