Bangladesh Bank Buys $202m to Boost Forex Reserves

In a strategic move to support exporters, remitters, and overall economic stability, the Bangladesh Bank (BB) has purchased an additional US$202 million from 13 commercial banks via the interbank spot market. The acquisition, conducted on Tuesday through the Multiple Price Auction method, carried a cut-off rate of Tk 122.29 per dollar, officials confirmed.

This latest intervention reflects the central bank’s ongoing efforts to stabilise the dollar-taka exchange rate, a crucial measure to ensure smooth export operations and remittance inflows. Since mid-July, BB has directly procured over US$2.50 billion from domestic banks, demonstrating a proactive stance in exchange rate management under the prevailing free-floating system.

A senior Bangladesh Bank official told The Financial Express:
“Our targeted operations in the foreign exchange market help stabilise the taka while simultaneously strengthening the country’s foreign currency reserves. These measures directly benefit exporters, remitters, and the broader economy.”

Earlier, on 4 December, the central bank acquired US$132 million from five banks under the same auction mechanism. Cumulatively, since 13 July, BB has bought US$2.51 billion from banks, a clear signal of sustained intervention aimed at ensuring currency stability.

The central bank’s strategy is already bearing fruit. According to BB’s traditional calculations, gross foreign exchange reserves rose to US$31.20 billion on 1 December from US$31.12 billion on 27 November. Using the International Monetary Fund’s Balance of Payments Manual (BMP6, 6th edition) methodology, reserves increased from US$26.40 billion to US$26.51 billion, underscoring the resilience of Bangladesh’s forex position.

Bangladesh Bank Forex Purchases (July–December 2025)

Economists highlight that BB’s continued engagement in the forex market is vital for exchange rate stability, investor confidence, and the sustained growth of exports and remittances. The bank’s calculated interventions signal a commitment to cushioning the domestic economy from external shocks while maintaining a robust foreign exchange reserve.