Bangladesh Bank buys another $67m to stabilise exchange rate
With this latest purchase, Bangladesh Bank’s dollar acquisitions in the current fiscal year have reached $2.87 billion
Bangladesh Bank has once again purchased US dollars from commercial banks through auctions in an effort to stabilise the foreign exchange market.
Today (17 December), the central bank bought a total of $67 million from seven banks at a rate of Tk122.30 per dollar.
With this latest purchase, Bangladesh Bank's dollar acquisitions in the current fiscal year have reached $2.87 billion, while purchases in December alone stand at $691 million.
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Bangladesh Bank began buying dollars through auctions in July this year as part of its market intervention strategy.
The central bank seeks to maintain balance in the foreign exchange market – allowing the dollar price to ease when supply is high and demand is low, and rise when demand increases.
Bankers say several factors have contributed to the recent easing of dollar demand.
They noted that pressure from large government payments has declined, reducing demand for foreign currency. At the same time, imports of capital machinery have slowed amid weaker business activity, trade and investment.
Private sector credit growth fell to a record low of 6.29% at the end of September, indicating subdued import activity despite adequate dollar availability.
Meanwhile, remittance inflows have strengthened. By the end of November, expatriate Bangladeshis sent $2.89 billion, further boosting dollar supply through formal banking channels.
