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Published : 02 Sep 2025, 09:00 PM
Bangladesh Bank has once again bought dollars from commercial banks in an auction to control the foreign exchange dollar rate.
The central bank bought $47.5 million from eight commercial banks at a rate of Tk 121.75 on Tuesday.
Bangladesh Bank Executive Director Arief Hossain Khan told journalists that the central bank bought a total of $995.50 million through about 10 auctions.
Arief said, “A rising or declining dollar rate is harmful to the economy. Therefore, the central bank is buying dollars through auctions to stabilise the market. This, in turn, is boosting liquidity flow in the banks.”
The dollar rate began to fall in July, prompting Bangladesh Bank to start buying dollars at auctions.
However, the managing directors of several banks have mentioned a sense of panic due to the fall in the dollar price at that time.
Bangladesh Bank data shows expatriates have sent over $2 billion in remittances for 13 consecutive months.
Of this, a record $3.29 billion was received in March, the highest amount in history, followed by the second highest, $2.96 billion, in May.
In contrast, capital equipment imports have declined by 25.42 percent in the 2024-25 fiscal year. Economists and bankers attribute this drop to a slowdown in new investment.
A senior Bangladesh Bank official said businessmen are refraining from taking new bank loans due to a decrease in new investment, resulting in a reduced credit flow to the private sector.
The latest data from Bangladesh Bank shows credit flow to the private sector has stood at 6.49 percent, which is the lowest in the last decade.
Meanwhile, the dollars bought by the central bank through auctions are being added to the reserves.
According to the data provided by Bangladesh Bank on Tuesday, the foreign exchange reserves following the BPM-6 method have stood at $26.39 billion, and the gross reserves have stood at $31.38 billion.
