In a strategic move to stabilize the nation's foreign exchange market, Bangladesh Bank (BB) purchased an additional $89 million from commercial banks through auction today, December 30. This latest acquisition brings the total volume of dollars purchased by the central bank to $3.13 billion within the first half of the current fiscal year.
The transaction involved seven commercial banks, with the exchange rate settled at Tk 122.30 per dollar. This intervention reflects the central bank's ongoing commitment to managing currency volatility under its market-based exchange rate framework.
Since July, the central bank has shifted from selling dollars to buying them via auctions. This pivot aims to prevent the local currency from appreciating too rapidly when supply exceeds demand, thereby protecting exporters and remittance earners.
Banking experts point to several factors contributing to the current surplus of greenbacks in the banking channel:
A notable slump in business activity and investment has led to a decrease in the import of capital machinery.
The pressure on foreign currency has eased as several of the government's large-scale foreign payment obligations have recently been settled.
Under the current system, Bangladesh Bank allows the dollar price to fluctuate naturally. However, it intervenes to "mop up" excess liquidity to maintain a balanced equilibrium, ensuring that the exchange rate remains competitive and stable for the broader economy.
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