Bangladesh Bank is also actively involved in the foreign exchange market by acquiring another $67million dollars with the commercial banks in an attempt to maintain the taka at a stable position with the US dollar. The action is a continuation of the central bank policy to keep the dollar supply and demand in line with fading pressure of imports and increasing remittance inflows. The central bank has been buying dollars steadily since the onset of the current fiscal year to ensure that too much volatility is not experienced in the exchange rate. The most recent auction purchase is an indicator of confidence in the better inflows of foreign currency whereas maintaining market discipline during the fluctuating time of demand.
Fresh Dollar Purchase Through Auctions
Bangladesh Bank purchased seven banks in an auction on 17 December 2025 at a rate of Tk122.30 per dollar at an auction of 67 million dollars. This purchase moved the dollar purchases by the central bank to a total of 2.87 billion in the current fiscal year. There was a scale of intervention seen in the number of acquisitions made in December at 691 million alone.
Another initiative of the Bangladesh Bank buying another $67m to stabilise exchange rate is part of a wider architecture which was initiated in July when the central bank changed to auction dollar purchases. This system enables the governments to absorb surplus dollars in situations where there is more supply than demand resulting in a sudden appreciation of taka.
Why Dollar Demand Has Eased
Bankers and market analysts cite a number of reasons as to why the demand of the dollar has been softening of late. The big payments in the form of foreign payments to the government have been decreased, and immediate pressure on the market is lessened. Also, capital machinery imports have reduced because of the declining business confidence, the decreased activity in trade and the dimmed investment mood.
The growth rates of credit in the private sector dropped to 6.29% in September, the lowest in the history of the country, and will indicate decreased borrowing to buy imports. Even with sufficient supply of dollars, business people are reserved and this has helped in creating a more balanced balance in foreign exchange. In this regard, the Bangladesh Bank buys another $67m to stabilise exchange rate variations to avoid an unreasonable currency movement.
Remittances Strengthen Dollar Supply
Among the most encouraging ones is the high increase in the remittance inflows. By the month of November, the expatriates in the country of Bangladesh had sent home $2.89 billion via the established banking systems. This has been a continuous inflow which has greatly increased the liquidity of the dollar and the intervention strategy of the central bank.
The increased remittances are not only useful in increasing the reserves but also decreasing dependence on last-minute solutions. As the inflows are better and demand is kept in check, the Bangladesh Bank buys another $67m to stabilize the exchange rate approach and provides strength of confidence among market players.
Outlook for the Foreign Exchange Market
In the future, it is likely that Bangladesh Bank will keep its measured interventions, which will intervene in cases of disequilibrium in supply and demand. Analysts are of the view that with the remittance continuing to be high and imports moderate, then the exchange rate stability will be further enhanced. Nevertheless, international insecurities and fluctuations of energy prices may still be a threat.
