The Bangladesh Bank purchased $743 million from commercial banks through auctions during the first 20 days of January, as part of its ongoing efforts to stabilise the exchange rate, reports TBS.
Confirming the matter, BB Executive Director and Spokesperson Arif Hossain Khan said the central bank bought $45 million from two commercial banks on Tuesday alone.
With the latest purchase, Bangladesh Bank's total dollar buying from commercial banks through auctions in the current fiscal year 2025-2026 has reached $3.88 billion.
Speaking to reporters at a seminar on Tuesday, BB Governor Ahsan H Mansur said commercial banks are voluntarily selling dollars to the central bank, which has increased liquidity in the market.
He added that the rise in dollar inflows has been a key factor behind the growth in bank deposits.
The governor also noted that higher dollar inflows have helped turn Bangladesh's balance of payments financial account into a surplus. As foreign currency supply increases, deposit growth in the banking sector is also expected to accelerate, he said.
The central bank began purchasing dollars through auctions from July last year as part of its foreign exchange market intervention strategy. Under the market-based exchange rate regime, the central bank aims to maintain balance in the foreign exchange market – allowing the dollar price to fall when supply exceeds demand, while letting it rise when demand increases.
Bankers say the recent decline in dollar demand is driven by several factors. The government's large external payment obligations have eased, reducing pressure on foreign currency demand.
At the same time, sluggish business activity and weak investment have led to lower imports of capital machinery, further easing demand for dollars, they said.
Bd-pratidin English/ ANI
