Bangladesh Bank Buys Dollars to Stabilise Exchange Rate

Bangladesh Bank has taken an assertive step in the foreign exchange market by purchasing 132 million US dollars from five banks in the interbank spot market on Thursday. The main goal of the move is to stabilise the dollar-taka exchange rate and maintain smooth economic conditions in the country.

The initiative comes amid ongoing pressure on the local currency and in an effort to reduce exchange rate volatility. Officials said the latest purchase, conducted through a Multiple Price Auction, helps support export sectors and ensures the steady inflow of remittances from abroad.

The purchased dollars were obtained at a cutoff rate of 122.29 taka per US dollar. At the previous auction on 30 November, the cutoff rate was 122.25 taka per dollar. According to the bank, a total of 2.41 billion dollars have been purchased directly from banks since 13 July under the free-floating exchange rate arrangement.

A senior official told the media, “We are purchasing dollars from banks to stabilise the exchange rate. This, in turn, supports export earnings and sustains remittance inflows.”

Meanwhile, Bangladesh’s gross foreign exchange reserves rose to 31.20 billion dollars on 1 December from 31.12 billion dollars on 27 November. Under IMF’s BPM6 standard, reserves increased from 26.40 billion dollars to 26.51 billion dollars during the same period.

AJ