BB buys $1.08b in 1.5 months to stabilise exchange rate and support export flows

The Bangladesh Bank has purchased $1.08 billion from commercial banks in the last one and a half months, including $134 million today (4 September), as part of its efforts to stabilise the exchange rate and support remittance and export flows.

The central bank spokesperson Arief Hossain Khan told The Business Standard that the $1.08 billion has been purchased so far since 13 July in dollar auction method.

According to the spokesperson, the central bank bought $134 million today from five banks at Tk121.75 per dollar under the Multiple Price Auction method, with the cut-off also set at Tk121.75.

Earlier, on 2 September, it purchased $47.5 million from eight banks at exchange rates ranging between Tk121.70 and Tk121.75. On 28 August, the regulator initially targeted $30 million but ended up purchasing $149.5 million, with a cut-off rate of Tk121.70.

Bangladesh Bank first began the auction-based purchase on 13 July, buying $171 million at Tk121.50. Two days later, on 15 July, it acquired another $313 million at the same rate.

The move marked a policy shift, with the central bank now actively intervening to prevent the dollar's value from falling sharply.

A deputy managing director of a private bank said robust remittance and export inflows over the past year had enabled banks to clear overdue import bills, especially for fuel. With import pressure easing, the supply of dollars is now surpassing demand, pushing the rate down.

"The central bank's intervention is aimed at keeping the rate within the apparent target range of Tk121.50 to Tk122.50," he added.

According to Bangladesh Bank data, the country's foreign exchange reserves stood at $26.34 billion as of 2 September under the BPM6 calculation.