Dhaka, Sep 15 (V7N) – Bangladesh Bank has purchased about $1.13 billion from the market over the past one and a half months to maintain stability in the foreign exchange market. Officials said the move is aimed at supporting exporters and remittance inflows while ensuring a stable dollar price.

The central bank emphasized that this is not an intervention in pricing, but rather a step to absorb excess supply and keep the market balanced. Transactions in the interbank market are currently steady between Tk 121–122 per dollar, after recovering from last year’s instability.

Spokespersons noted that the supply of dollars surged in recent weeks due to strong growth in exports and remittances, along with foreign loan inflows. As a result, reserves rose and the exchange rate showed signs of weakening, with the dollar briefly slipping below Tk 120 in mid-July.

To prevent further depreciation, Bangladesh Bank began purchasing surplus dollars through tenders—$170 million on July 13 and $132 million on September 4, bringing the total to $1.13 billion so far.

During the first two months of the current fiscal year, the country earned $13.5 billion from exports and remittances, while spending $10.5 billion on imports and debt repayments, leaving a surplus in the market.

Arif Hossain Khan, Executive Director of Bangladesh Bank, explained:

“This is not an intervention. When commercial banks hold excess dollars, they offer to sell them to the central bank. By purchasing, we ensure stability in the exchange rate.”

Bankers welcomed the move, saying it allows them to offload surplus dollars and prevents remittances from being diverted into informal channels. They warned that if the dollar weakens too much in the banking system, remittances could shift toward alternative routes.

In the last fiscal year, Bangladesh received over $30 billion in remittances, a 26% increase compared to the previous year, further strengthening foreign currency inflows.

END/SMA/AJ