BB buys another $196.5m to stabilise forex market

The Bangladesh Bank (BB) purchased an additional $196.5 million from 16 banks on Thursday, continuing its aggressive streak of dollar procurement to manage the country's foreign exchange market.

The central bank executed the purchase at a cut-off rate of Tk122.30 per US dollar, Arif Hossain Khan, executive director and spokesperson of Bangladesh Bank, confirmed this.

With this latest move, the central bank’s total dollar purchases for the month of February have reached $586 million in just five days. The total acquisition for the current fiscal year, FY2025-26, now stands at a substantial $4.51 billion.

This week has seen consistent intervention by the central bank. Previously on Wednesday, $171 million was purchased from 16 banks.

Before that on Sunday, another $218.50 million was purchased from 16 banks.

The central bank has maintained a steady exchange rate of Tk122.30 for most of its recent transactions. Earlier interventions in January included $55 million from five banks (29 January), $45 million from two banks (20 January), $81 million from 10 banks (12 January), and $223.50 million from 14 banks (6 January).

According to central bank sources, the primary goal is to stabilise the exchange rate and prevent the Taka from appreciating too rapidly due to a surge in remittance inflows and export earnings. 

By purchasing the "excess" supply of dollars from commercial banks, the central bank aims to strengthen foreign reserves, support exporters and remitters, and manage liquidity.