In a bid to maintain stability in the foreign exchange market, Bangladesh Bank (BB) on Tuesday purchased $85 million from six commercial banks.
The central bank fixed the cut-off rate for the transaction at Tk 122.75 per US dollar, according to relevant sources at Bangladesh Bank.
With this latest transaction, the central bank’s total dollar purchase in the current month of May has reached $395 million. Meanwhile, the aggregate dollar purchase since the beginning of the 2025-26 fiscal year has risen to $6.06 billion.
Financial analysts noted that a recent surge in remittance inflows and export earnings has positively shifted the foreign exchange supply, resulting in surplus dollar liquidity across commercial banks. The central bank is now regularly buying dollars from the market to prevent a sharp decline in the greenback's value and to rebuild the country's foreign exchange reserves.
According to economists, the national economy—which had been under immense pressure for the past few years due to a severe dollar crunch, skyrocketing import bills, and depleting reserves—is now gradually moving toward stability.
They attributed this relief to the increased flow of remittances through formal channels, growth in export earnings, and controlled import expenditures, all of which have significantly boosted dollar availability in the interbank market.
Bangladesh Bank officials explained that the central bank steps in to purchase dollars when there is an excess supply in the market and, conversely, injects dollars into the market during a shortage. This mechanism is utilized to keep the exchange rate relatively stable.
Echoing similar views, commercial bankers stated that the foreign exchange market is no longer facing the intense pressure it did previously. Many banks now possess surplus dollars beyond their immediate requirements, allowing the central bank to mop up excess liquidity. This strategy is simultaneously fortifying national reserves while mitigating the risk of a sudden crash in the dollar rate.