Bangladesh Bank bought an additional $134 million from five commercial banks in a focused auction to help steady the taka and make trade and payments smoother, a move that shows the central bank is acting to support currency stability. This purchase follows earlier buys of $948 million made over recent weeks, putting total acquisitions above $1 billion since mid year, and it comes as exports and remittances remain steady while import demand has eased. Central bank figures show foreign exchange reserves stood at $26.19 billion recently, up from $20.59 billion a year earlier, a rise that gives authorities more room to manage short term pressures. Over the past three years the bank sold more than $25 billion from reserves to cover import bills for fuel, fertiliser and food, so the recent buying marks a shift aimed at rebuilding buffers. The bank set a cut off rate of Tk 121.75 for the auction, and interbank trades that day ranged from Tk 121.66 to Tk 121.78 with a weighted average near Tk 121.72, showing a narrow trading band after the operation. By bringing dollars into the market in a planned way, the bank aims to reduce sharp swings that make prices and planning hard for shops, factories and transport services. The auctions give banks clear signals about value, help traders judge costs and let importers and exporters plan shipments with less worry about sudden exchange moves. Officials say the buying supports state agencies that must pay for essential imports, and it complements steady remittance flows and rising export receipts that together lift reserves. The approach looks cautious: earlier in the year the central bank sold dollars to curb fast depreciation, while now it is buying to shore up the currency as conditions change. For businesses the effect can be practical — fewer sudden price swings for fuel and raw materials, clearer pricing from suppliers and smoother customs processing when banks and traders work from the same market signals. The move will not remove all risk, but stronger reserves and targeted auctions can calm traders and reduce the chance of sharp disruptions in trade finance. Banks and foreign partners may take encouragement from firmer reserves and steadier trading, which can ease credit and payment flows, attract stable capital and help buyers and sellers agree prices. The central bank will watch markets closely and act as needed for stability. Analysts say steady policy can lower import costs, help small traders and encourage investment in local production, which supports jobs and growth. With clearer exchange signals, businesses can plan purchases and prices confidently while the bank keeps close watch on market data and seasonal flows to decide next steps. Benefits could appear within months.
