Bangladesh Bank has purchased an additional $55 million from five commercial banks, bringing its total dollar purchases to $3.93 billion since the start of the current fiscal year. The central bank’s Executive Director and spokesperson, Arif Hossain Khan, confirmed the transaction, noting that the move aims to maintain market balance amid increased foreign currency supply.

According to the report, the dollar market in Bangladesh became unstable in 2022, when the exchange rate rose from 85 to 122 taka per dollar. Over the past three fiscal years, the central bank sold about $34 billion to support the market, while buying only around $1 billion during that period. Following the fall of the previous Awami League government, the current administration took strict measures to curb money laundering, resulting in higher export earnings and remittance inflows.

Khan stated that the current market has more dollar supply than demand, and the central bank is buying dollars to prevent an excessive fall in the exchange rate, which could harm remittance and export sectors. As of January 22, the country’s foreign exchange reserves stood at $32.66 billion, or $28 billion under BPM-6 standards.