Bangladesh Bank buys $2.08 billion from banks to stabilise forex market

Bangladesh Bank (BB) on Thursday purchased another US$107 million from 10 commercial banks through an auction as part of its ongoing efforts to stabilise the foreign exchange market.

With this latest acquisition, the total amount of dollars bought by Bangladesh Bank since July now stands at $2.08 billion.

The central bank acquired the US dollars via the foreign exchange auction committee, utilising the multiple price auction method. The exchange rate for this transaction was fixed at Tk 121.80 per dollar.

Arif Hossain Khan, spokesperson for the central bank, confirmed the purchase, explaining that the move was necessitated by an “excess supply of dollars in the market compared to demand.”

He stated that the decision to intervene by purchasing dollars, which began in July, was aimed at "maintaining the market price and protecting the interests of exporters and expatriate workers."

The purchase on Thursday marks the 14th such intervention by the central bank. Previously, the Bangladesh Bank bought dollars in 13 separate phases. The last purchase, on October 6, involved $104 million at rates ranging from Tk 121.78 to Tk 121.80.

Earlier transactions included $17.10 million bought on July 13 at Tk 121.50, $31.30 million on July 15 at the same rate, and $10 million on July 23 at Tk 121.95.

Subsequent purchases were made on August 7 ($45 million at Tk 121.47-Tk 121.50), August 10 ($83 million at Tk 121.50), August 14 ($176.5 million at Tk 121.50), and August 28 ($149.5 million at Tk 121.66-Tk 121.70).

Bangladesh Bank also purchased dollars in September on the 2nd ($47.5 million), 4th ($134 million), 9th ($265 million), 15th ($353 million), and 22nd ($129 million) at a consistent rate of Tk 121.75 per dollar.