Bangladesh Bank injects another $20m into market

Bangladesh Bank has sold $20 million from its reserves to keep the foreign exchange market stable, amid concerns that the dollar's exchange rate could cross Tk 124.

The dollars were sold to commercial banks on Monday (October 19) at Tk 123.65 each, a senior Bangladesh Bank official told the media. The central bank took the step to curb the exchange rate by increasing the supply of dollars in the market.

This is the second time in the current 2026-27 fiscal year that the central bank has sold dollars from its foreign exchange reserves. Earlier, on September 14, it sold $11.5 million.

According to central bank data, the dollars were sold at Tk 122.80 each in September. This time the rate has risen to Tk 123.65, meaning Bangladesh Bank received 85 paisa more per dollar than last time.

Maintaining a balance between demand and supply of dollars in the foreign exchange market is one of the central bank's key objectives. When pressure builds for the exchange rate to rise, the central bank sells dollars from its reserves to increase market supply. However, such sales have some impact on foreign exchange reserves.