Central Bank Executes Major Dollar Auction

On Monday, 12 January, Bangladesh Bank acquired USD 81 million from ten commercial banks through a scheduled auction, officials confirmed. Arif Hossain Khan, Executive Director and spokesperson of the central bank, stated that the transaction was completed at an exchange rate of BDT 122.30 per US dollar.

The auction was conducted in line with the country’s foreign exchange policy, with a cut-off rate of BDT 122.30. This latest purchase brings the total dollar acquisitions for January 2026 to USD 698 million, a strategic measure aimed at ensuring sufficient foreign currency supply in the domestic market and stabilising the value of the taka.

Economists and market analysts emphasise that maintaining a balance between foreign currency demand and supply is vital for the current fiscal year. These transactions help the central bank curb inflation, support a stable import-export balance, and enhance investor confidence in the domestic financial market.

Throughout the ongoing 2025–26 fiscal year, Bangladesh Bank has conducted multiple auctions to purchase US dollars. To date, the total foreign currency acquired stands at USD 3.835 billion (383.35 crore). Analysts note that such large-scale acquisitions not only strengthen the country’s foreign exchange reserves but also mitigate excessive volatility in the US dollar market.

The table below provides a summary of recent central bank dollar purchases:

Market observers suggest that the central bank’s auction strategy plays a critical role in controlling dollar volatility, preventing inflationary pressures, and maintaining overall economic stability. By ensuring a steady flow of foreign currency, these measures also support balanced trade, encourage foreign investment, and strengthen national reserves.

Regularly scheduled auctions are considered a proactive mechanism to reinforce financial system security and maintain public confidence in the domestic currency market. Experts highlight that consistent management of foreign exchange reserves is essential to safeguard the country’s economic resilience amid fluctuating global financial conditions.