In a historic move, Bangladesh Bank on Monday purchased $171 million from commercial banks through an auction—the first such transaction in the country’s financial history.
The central bank’s decision comes amid a strengthening of the Bangladeshi Taka, driven by rising remittance inflows and export earnings.
To stabilize the exchange rate, Bangladesh Bank set the dollar purchase rate at Tk 121.50, higher than the average market rate of around Tk 120 offered by most banks.
A senior official from Bangladesh Bank stated that the central bank intervened to prevent further decline in the dollar`s value.
“If the exchange rate rises again in favor of the dollar, we may sell dollars through auctions to keep the market stable,” he said.
He further noted that Bangladesh Bank retains the option to step in at any time to stabilize the exchange rate if necessary.
A senior treasury official from a leading private bank noted that the exchange rate stood at Tk 120 per dollar on Sunday and was expected to rise to Tk 121.50 following the central bank’s move.
Last week, the dollar had been trading above Tk 123, but the rate has since fallen steadily, prompting this unprecedented auction-based intervention.
