Central Bank Acquires $115 Million to Bolster Reserves

In a strategic move to ensure stability within the national foreign exchange market, the central bank of Bangladesh has successfully purchased $115 million from three prominent commercial banks through a competitive auction process. This latest intervention, conducted on Sunday, 28 December, marks a continued effort by the monetary authorities to manage currency volatility and strengthen the country’s external buffer. According to official data released by the central bank, the transaction was executed at a settled rate of 122.30 BDT per US dollar.

This procurement is part of a broader, more aggressive strategy by the central bank to absorb excess liquidity in the foreign exchange market while simultaneously replenishing official reserves. Throughout the final month of 2025, the central bank has maintained a high frequency of interventions, with total purchases for December reaching a significant $920.50 million. This proactive stance reflects a shift in monetary policy aimed at building a robust “war chest” of foreign currency to meet international payment obligations and support the value of the Taka.

The scale of these operations becomes even more apparent when looking at the broader fiscal landscape. For the first half of the 2025–26 fiscal year, the central bank’s cumulative dollar acquisitions have climbed to a staggering $3,046.50 million. Industry analysts suggest that this sustained buying pressure is intended to provide a predictable environment for importers and exporters alike, mitigating the risk of sharp devaluations that could fuel domestic inflation.

Summary of Central Bank Foreign Exchange Interventions (2025)

The following table provides a breakdown of the central bank’s recent dollar acquisition milestones:

Despite the substantial volume of currency being moved into the reserves, the central bank has signalled that it will continue to monitor the interbank market closely. The auction mechanism allows the regulator to calibrate the influx of dollars based on the immediate liquidity needs of commercial banks, ensuring that the private sector’s demand for trade financing remains satisfied. As the new calendar year approaches, the focus remains on maintaining the 122.30 BDT threshold as a baseline for stability, providing a clear signal to international investors and domestic stakeholders that the central bank is committed to a disciplined and well-managed exchange rate regime.