Central Bank Buys Additional 149 Million Dollars Through Auction

The Bangladesh Bank has purchased an additional 149 million US dollars through an auction process as part of its ongoing market management operations. The dollars were collected from 16 commercial banks across the country. This information was disclosed on Thursday (11 December) by the central bank’s spokesperson, Arif Hossain Khan. He said the purchase was conducted after carefully considering the prevailing supply situation in the foreign exchange market and described the move as a routine component of the central bank’s market management strategy.

According to the central bank spokesperson, the current situation in the foreign exchange market shows that the supply of dollars is higher than demand. In such circumstances, Bangladesh Bank began purchasing dollars from July with the objective of protecting the interests of exporters and expatriate income earners, while also ensuring stability in the dollar exchange rate. He noted that this initiative has helped maintain balance in the foreign exchange market and has reduced the risk of sudden and abnormal fluctuations in the value of the dollar. Based on the information provided by the central bank, a total of 2.663 billion US dollars has been purchased so far during the ongoing programme.

The most recent purchase was carried out 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. According to central bank sources, this method allows dollars to be purchased at multiple prices, which supports price determination in line with actual market conditions. As a result, it becomes possible to collect foreign currency without creating artificial shortages or excessive pressure in the market.

Bangladesh Bank has been buying dollars in phases at different times prior to this latest auction. 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 rate. Later, on 23 July, Bangladesh Bank bought an additional 10 million dollars at a rate of Tk 121.95 per dollar.

Furthermore, significant amounts of dollars were purchased on 7, 10, 14 and 28 August; 2, 4, 9, 15 and 22 September; 6, 9 and 24 October; and most recently on 9 December, at different exchange rates. The main objective of these purchases was to maintain stability in the foreign exchange market and prevent the dollar rate from falling abnormally due to excess supply.

Bangladesh Bank sources stated 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. Relevant officials also indicated that the central bank will continue to review market conditions and conduct similar auction operations in the future whenever necessary.