Bangladesh Bank Increases Dollar Purchases

Bangladesh Bank has intensified its intervention in the foreign exchange market by purchasing 132 million US dollars from five banks in the interbank spot market on Thursday, aiming to stabilise the dollar-taka exchange rate.

The move comes amid ongoing pressure on the local currency and a broader effort to reduce volatility under the free-floating exchange rate system. Officials stated that the latest purchase, conducted through a Multiple Price Auction, is part of the central bank’s effort to support export competitiveness and maintain steady remittance inflows from abroad.

The operation also aids in rebuilding the country’s foreign exchange reserves. The purchase was made at a cutoff rate of 122.29 taka per US dollar, compared with 122.25 taka per dollar at the previous auction held on 30 November.

According to central bank data, Bangladesh Bank has so far bought 2.41 billion dollars directly from banks since 13 July under the free-floating exchange rate arrangement. A senior official of Bangladesh Bank told the media, “We are purchasing US dollars from banks to help stabilise the exchange rate, which in turn supports export earnings and inward remittance flows.”

Bangladesh’s gross foreign exchange reserves reached 31.20 billion dollars on 1 December, up from 31.12 billion dollars on 27 November. Under the International Monetary Fund’s BPM6 standard, reserves increased from 26.40 billion dollars to 26.51 billion dollars during the same period.

KhaborwalaAJ