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Bangladesh Bank has sold $20 million from its foreign exchange reserves to stabilise the market amid concerns that the dollar exchange rate could cross Tk 124.
The central bank sold the dollars to commercial banks at Tk 123.65 each on Monday (October 19), a senior Bangladesh Bank official told the media. The move aimed to increase dollar supply and contain upward pressure on the exchange rate.
This is the second time the central bank has sold dollars from its reserves in the current 2026-27 fiscal year. On September 14, it sold $11.5 million.
Central bank data show that dollars were sold at Tk 122.80 each in September. The rate has since increased by 85 paisa to Tk 123.65 per dollar.
Bangladesh Bank intervenes in the foreign exchange market to maintain a balance between dollar demand and supply. When demand rises and puts pressure on the exchange rate, the central bank sells dollars from its reserves to boost supply.
However, such interventions also reduce the country’s foreign exchange reserves.