The Bangladesh Bank on Tuesday announced the dollar exchange rate would be decided by spot markets, almost liberalising the country’s foreign exchange transactions in the New Year 2025.

The central bank is working to meet IMF requirements to secure more bailout funds, and address ages of forex mismanagement.

From 12 January, Bangladesh Bank would publish the dollar purchase rate twice every day to keep up with the market dynamics.

The Bangladesh Foreign Exchange Market Spot Reference Exchange Rate would be based on data provided by authorised dealer (AD) banks twice on every business day.

From 5 January, everyday all the AD bank would provide data on all the transactions settled at one lakh dollar or above during 8am-11am at 11.30am and during 11am-5pm at 5.30pm so that the central bank can update its weighted average reference rate at 12.30pm and 6pm.

The Bangladesh Bank will periodically review the market turnover, market concentration and trade-distribution metrics to develop additional measures, "as needed, to ensure that RR remains a reliable reference foreign-exchange rate".

The Bangladesh Bank will serve as the main source of publication for the dollar reference rate, it said.