To curb volatility and stabilize the exchange rate, particularly to prevent further weakening of the US dollar against the taka, Bangladesh Bank (BB) has been purchasing greenbacks from commercial banks since mid-July, a move that has strengthened reserves and reinforced the central bank’s active role in maintaining currency stability in the foreign exchange (Forex) market.
However, the Bangladeshi Taka strengthened by Tk2.75 against the US dollar in the first two weeks of July.
In just a day, on July 14, the greenback's rate eased by Tk1.10 to stand at Tk120.10.
Data analysis revealed that since the May 14 announcement to let the dollar float to meet IMF loan conditions by Bangladesh Bank, the exchange rate did not rise till mid-July.
Instead, it declined, and the taka became stronger.
But after Bangladesh Bank intervention, it rose again.
On August 12, the lowest dollar rate was Tk121.79, and the highest was Tk121.82.
Bangladesh Bank's data analysis shows that they bought a total of $2.08 billion through 14 auctions.
Lastly, on October 9, the central bank purchased another $107 million; after that, Bangladesh’s gross reserve rose to $31.93 billion, and as per BPM6, the reserve was $27.12 billion as of October 9, 2025.
What experts say
Bankers and economists told Dhaka Tribune that the central bank’s continuous dollar buying and record remittance inflow and export growth, along with loan disbursements from development partners, helped improve banks’ net open position (NOP), and there is no big shortfall in the current account, which bolstered Bangladesh Bank’s forex reserves and subsequently helped to stabilize the dollar rate.
Arif Hossain Khan, executive director and spokesperson of Bangladesh Bank, told Dhaka Tribune that the dollar's depreciation is also not positive for the currency market.
“We intervened to keep the market stable.”
Former World Bank Dhaka office lead economist Dr. Zahid Hussain told the Dhaka Tribune that Bangladesh Bank’s recent dollar purchases aim primarily to rebuild reserves and stabilize the exchange rate.
“There is currently sufficient dollar supply in the market, but demand remains weak. I think Bangladesh Bank faces a policy trade-off: it needs to rebuild reserves and safeguard external competitiveness while also managing liquidity and inflation, though in practice, the central bank appears to be prioritizing reserve accumulation.”
Once investment and economic activities pick up, dollar demand will rebound sharply, and the current reserve buildup will help meet that future demand, he added.
BB auctions
Bangladesh Bank's data analysis shows that, since July 13 till date, Bangladesh Bank has bought a total of $2.08 billion through 14 auctions.
Lastly, on October 9, Bangladesh Bank purchased another $107 million from 10 commercial banks through an auction.
Earlier, Bangladesh Bank bought $1.98 billion in 13 installments.
Of this, $171 million was purchased from 18 banks at Tk121.50 on July 13, and 313 million dollars was purchased at the same rate on July 15.
$10 million dollars was purchased at Tk121.95 on July 23.
On August 7, the central bank bought $45 million at Tk121.50 (cutoff rate), but the weighted average rate was Tk121.47.
$83 million dollars at Tk121.50 on August 10 and $176.5 million at the same rate on August 14.
On August 28, BB bought another $149.5 million high at Tk121.70 (cutoff rate), but the weighted average rate was Tk121.66.
On September 2, 4, 9, 15, and 22, central banks buy $47.5 million, $134 million, $265 million, $353 million, and $129.5 million, respectively.
Before October 10 in this month, BB bought $104 million on October 6, 2025, at a high of Tk121.80 (cutoff rate), but the weighted average rate was Tk121.79.
However, earlier, the central bank used to sell dollars from its reserves to manage the foreign exchange market, primarily to cover import costs for essentials like fuel, fertilizer, and food. This was a strategy used when the supply of dollars was low, causing the taka to weaken significantly.
Bangladesh Bank sold over $25 billion in the three fiscal years leading up to FY25 to manage these pressures.
But since July this year, the situation has reversed, and the bank has been purchasing dollars instead of selling them.