BB buys another $47.5m to stabilize market

Bangladesh Bank (BB) has purchased an additional US$47.5 million from eight commercial banks in its sixth round of dollar buying, officials confirmed Tuesday (September 2). 

The purchase was made at rates between Tk 121.70 and Tk 121.75 per dollar.
Executive Director and spokesperson of the central bank, Arif Hossain Khan, said, “Instead of selling from reserves, we are buying dollars from the market to prevent abrupt price swings,” he noted.
This marks the sixth intervention of the current fiscal year. Earlier, the central bank bought $171 million on July 13, $313 million on July 15, $10 million on July 23, $45 million on August 7, and $83 million on August 10—at varying rates between Tk 121.35 and Tk 121.95.
Officials explained that commercial banks currently hold surplus dollars due to lower import demand and steady repayment of external obligations. By absorbing the excess supply, Bangladesh Bank is preventing a sharp fall in the exchange rate while simultaneously boosting reserves.
With the latest purchase, Bangladesh’s foreign exchange reserves now stand above US$31 billion. Policymakers expect the buffer to support future investment-driven imports once a new elected government takes office next year.