The Bangladesh Bank has purchased an additional 149 million US dollars through an auction process as part of its continuing efforts to manage the foreign exchange market in an orderly and structured manner. The foreign currency was collected from 16 commercial banks operating across the country. The information was disclosed on Thursday, 11 December, by the central bank’s spokesperson, Arif Hossain Khan. He said the decision to buy dollars was taken after a careful assessment of the prevailing supply situation in the foreign exchange market and described the initiative as a routine component of the Bangladesh Bank’s market management operations.
According to the spokesperson, the current situation in the foreign exchange market shows that the supply of US dollars is higher than overall demand. In such circumstances, Bangladesh Bank started purchasing dollars from July with the objective of safeguarding the interests of exporters and expatriate income earners, while also ensuring stability in the dollar exchange rate. He explained that this initiative has played an important role in maintaining balance in the foreign exchange market and has helped reduce the risk of sudden and abnormal fluctuations in the value of the dollar. Based on information provided by the central bank, a total of 2.663 billion US dollars has been purchased so far under this ongoing programme.
The most recent purchase was carried out under the supervision of the Bangladesh Bank’s Foreign Exchange Auction Committee through the multiple price auction method. Under this system, the price per US dollar ranged between Tk 122.25 and Tk 122.29. Central bank sources said that this method allows dollars to be purchased at more than one price, which supports price determination in line with actual market conditions. As a result, foreign currency can be collected without creating artificial shortages or placing excessive pressure on the market, thereby contributing to overall stability.
Before this latest auction, Bangladesh Bank had purchased dollars in phases on several occasions. 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, a further 313 million dollars were purchased at the same exchange rate. Later, on 23 July, Bangladesh Bank bought an additional 10 million US dollars at a rate of Tk 121.95 per dollar.
In addition to these transactions, significant amounts of dollars were purchased on 7, 10, 14 and 28 August; on 2, 4, 9, 15 and 22 September; on 6, 9 and 24 October; and most recently on 9 December, at different exchange rates. The primary aim of these purchases was to maintain stability in the foreign exchange market and to prevent the dollar rate from falling abnormally due to excess supply.
Bangladesh Bank sources said 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. Officials concerned also indicated that the central bank will continue to closely review market conditions and, where necessary, conduct similar auction operations in the future as part of its ongoing market management strategy.