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Bangladesh Bank (BB) purchased an additional US $171 million from 16 commercial banks on Wednesday as part of ongoing efforts to stabilise the country’s foreign exchange market.
The dollars were bought at a cut-off rate of Tk 122.30 per US dollar, a central bank official said.
This intervention follows a major purchase on Monday when the central bank acquired $218.5 million from 16 banks at the same rate. With these recent transactions, BB’s total dollar purchases in February have reached $389.5 million in just four days, reports UNB.
Aggressive Accumulation in FY2025-26
Throughout the current fiscal year, Bangladesh Bank has been actively buying dollars to curb rapid Taka appreciation and strengthen foreign exchange reserves.
The total purchases for FY2025-26 have reached $4.32 billion.
Recent Major Interventions:
Feb 4: $171 million from 16 banks
Feb 2: $218.5 million from 16 banks
Jan 29: $55 million from 5 banks
Jan 20: $45 million from 2 banks
Jan 12: $81 million from 10 banks
Jan 6: $223.5 million from 14 banks
All transactions were executed at a uniform cut-off rate of Tk 122.30.
Rationale Behind Market Intervention
Arif Hosain Khan, Executive Director and Spokesperson of Bangladesh Bank, confirmed the latest purchase, noting that the central bank employs an auction-based system to manage liquidity.
Key drivers include:
Remittance Surge: Inward remittances through formal banking channels have reached record levels, with January 2026 alone seeing $3.17 billion, leaving banks with surplus dollar holdings.
Exchange Rate Management: By setting a cut-off rate, the central bank aims to establish a floor for the Taka, supporting exporters and remitters.
Reserve Strengthening: Dollar purchases are helping rebuild the country’s foreign exchange reserves, which stood at $28.51 billion (net) as of December 2025.
Banking insiders say that while the dollar crisis of previous years has eased, active participation by the central bank remains critical to prevent market volatility and ensure a predictable exchange rate for trade planning.