Central Bank Purchases Additional Sixty Million Dollars at Auction

Bangladesh Bank has continued its intervention in the foreign exchange market by purchasing an additional USD 60 million through a competitive auction, reinforcing its ongoing efforts to stabilise the taka and strengthen foreign exchange reserves. The transaction was concluded on Sunday, 21 December, following bids submitted by four commercial banks.

Confirming the development, Bangladesh Bank’s Executive Director and official spokesperson, Arif Hossain Khan, stated that the central bank bought the dollars at an exchange rate of Tk 122.30 per US dollar. He added that the same figure served as the cut-off price for the auction, indicating uniform pricing across accepted bids.

With this latest purchase, the central bank’s total dollar acquisition for the current month of December has reached USD 805.50 million, or approximately USD 805.55 million according to official calculations. The continued scale of purchases highlights Bangladesh Bank’s active role in managing liquidity in the foreign exchange market amid fluctuating demand for the US dollar.

Officials noted that the central bank has been conducting such auctions at regular intervals to ensure orderly market conditions, curb excessive volatility in the exchange rate, and support macroeconomic stability. By absorbing surplus dollars from the market, Bangladesh Bank also aims to prevent abrupt appreciation of the taka, which could otherwise affect export competitiveness and remittance inflows.

The central bank has been particularly active in the current 2025–26 fiscal year. Since the beginning of the fiscal year, it has purchased dollars on multiple occasions through similar auction mechanisms. According to Bangladesh Bank data, the cumulative amount of dollars bought so far stands at USD 2.93 billion, equivalent to approximately USD 2.9315 billion. These purchases reflect a strategic approach to rebuilding reserves while maintaining transparency through market-based pricing.

Market participants observe that the use of auctions, rather than direct interventions, allows the central bank to discover a fair market price for foreign currency while ensuring disciplined participation by commercial banks. Only selected banks typically participate directly in these auctions, ensuring efficiency and regulatory oversight.

Economists suggest that such dollar purchases are particularly significant at a time when remittance inflows and export earnings show seasonal variations. By intervening when supply conditions permit, Bangladesh Bank seeks to balance the twin objectives of reserve accumulation and exchange rate stability without creating undue pressure on domestic liquidity.

Bangladesh Bank has reiterated that it will continue to closely monitor market conditions and take necessary measures, including further auctions, to safeguard financial stability and support the broader economy.

Summary of Recent Dollar Purchases by Bangladesh Bank

The latest acquisition underscores Bangladesh Bank’s sustained commitment to prudent foreign exchange management as it navigates evolving domestic and global economic conditions.