Bangladesh Bank Buys $115 Million to Support Forex Market

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Bangladesh Bank has purchased an additional $115 million from commercial banks through auction in a move to stabilise the foreign exchange market.

The central bank acquired the dollars from three banks on Thursday at a rate of Tk122.30 per dollar.

With this latest purchase, Bangladesh Bank’s total dollar acquisitions in the current fiscal year have reached $3.46 billion, including $920 million bought in December alone.

The central bank began buying dollars via auctions in July as part of its strategy to manage market stability. Under its market-based exchange rate framework, the bank aims to balance supply and demand—allowing prices to fall when supply is high and rise when demand increases.

Bankers said demand for dollars has recently eased due to the settlement of large government foreign payment obligations, slower business activity, and lower imports of capital machinery.

Despite sufficient dollar supply, private sector credit growth fell to a record low of 6.23% by the end of October, reflecting subdued import activity. Meanwhile, remittance inflows have continued to show a positive trend.