Written by The Banking Post
In a renewed attempt to stabilise the exchange rate, Bangladesh Bank (BB) purchased $313 million from the foreign exchange market on Tuesday, marking its second major intervention in just three days.
The central bank conducted the purchase through an auction involving 22 commercial banks, setting the maximum cut-off rate at Tk 121.50 per dollar. This move follows a similar intervention on Sunday, where BB bought $171 million from 18 banks. In total, the bank has injected $484 million into the market this week.
“We intervened again to maintain exchange rate stability,” a senior central bank official told The Banking Post. He added that the central bank would continue monitoring the market and act as needed to curb volatility.
The move comes amid a steady decline in the US dollar’s value against the Bangladeshi Taka. According to the central bank’s latest data, the reference rate of the greenback dipped slightly to Tk 121.1108 per dollar as of 5:00 pm Tuesday, down from Tk 121.1375 the previous day.
Central bank officials said the cut-off rate is determined by a combination of factors, including the spot reference rate, the real effective exchange rate (REER), and prevailing inflationary trends.
Market insiders attribute the dollar’s weakening to a combination of increased remittance inflows, higher export earnings, reduced import demand, and the impact of ongoing tariff discussions with the United States.
A senior treasury official at a private bank welcomed the move, calling it a “positive signal” for the forex market. “This intervention will help restore confidence. Both exporters and remitters stand to benefit,” he said.
Analysts also noted that the central bank’s dollar purchases would help bolster the country’s foreign exchange reserves, which have come under pressure in recent months.
