Bangladesh Bank purchased $202 million from the spot market on Tuesday in a continued effort to prevent Taka, the local currency, from appreciating too quickly, according to central bank officials.
With exchange rates ranging from Tk122.27 to Tk122.29 per US dollar, Bangladesh Bank purchased the greenback from 13 commercial banks that operate in the country.
This means the central bank has bought $2.51 billion so far in fiscal year 2025-26, with the latest currency acquisition coming nearly two months after its last US dollar purchase.
The preceding purchase was on 14 October, when Bangladesh Bank bought $38 million at a rate of Tk121.80 per greenback.
Central bank data shows that more than $25 billion was sold from its forex reserve to help cover fuel, fertiliser and food imports between fiscal years (FY) 2020-21 and 2024-25.
Bangladesh Bank has been buying more of the American currency since the start of FY26 as its supply increased thanks to higher exports and remittances.
Taka has gained against the US dollar since early July, with the exchange rate hitting a high point of Tk122.85 per greenback on 2 July.
Bangladesh’s gross forex reserve was $31.21 billion on 1 December, according to central bank calculations.
However, calculations under the BPM6 model of the International Monetary Fund showed that the forex reserve stood at $26.51 billion.
And although the central bank has been buying US dollars to prevent the Taka from appreciating sharply, analysts warn that a stronger local currency could reduce the country’s export competitiveness along with incentives for remittances.
Still, Bangladesh Bank’s US dollar purchases have helped greatly to stabilise the foreign exchange market.
In mid-July, the local currency had briefly strengthened to around Tk119.73 per greenback, its strongest level in more than a year, prompting the central bank to start acquiring US dollars. By the end of that month, the rate had settled closer to TK122.30 per greenback.
Since late-August, the weighted average reference rate of Bangladesh Bank has fluctuated within a narrow band of Tk121.61 to Tk121.86. On 9 September, when the central bank purchased $265 million, the rate closed at Tk121.73.
