Bangladesh Bank bought US$141.50 million through a dollar auction from 13 commercial banks to help steady the taka and support people and businesses that rely on remittances and trade, and the move aimed to calm the market and keep import costs from rising quickly. The central bank purchased dollars at rates between Tk122.29 and Tk122.30, with a cut-off rate fixed at Tk122.30, setting a clear price that banks can use when serving customers. Total purchases for the month reached $624.50 million, and purchases for the current financial year amounted to $2,804.50 million, figures that show the central bank has been active in managing liquidity and smoothing currency swings. Auctions like this give banks fresh dollars to sell or use for trade finance, which helps importers pay for critical goods and lets exporters convert earnings more easily without creating sudden spot market shocks. For people who receive money from abroad, a steadier exchange rate can mean the remitted amount goes further and household budgets face less stress when paying for essentials. Traders welcomed the extra liquidity because it can cut delays and cost for letters of credit and cargo clearing, and small businesses that rely on imported parts said easier access to dollars helps them keep production steady. Officials and market observers say the auctions are a practical way to manage short-term pressures while other policies work over time to strengthen foreign currency inflows, such as boosting exports and encouraging formal remittance channels. The bank’s move also gives the central bank room to coordinate with commercial lenders so that any excess demand for foreign currency is met without abrupt price swings that hurt confidence. Some experts noted that careful timing and a steady schedule of auctions can reassure markets more than one-off interventions, because predictability helps businesses plan and banks price services fairly. The strategy is not a permanent cure for all exchange rate challenges, but combined with stronger export growth, remittance support and clear trade rules it can help reduce volatility and support steady economic activity. Bank leaders said they will keep watching market needs and use auctions as one tool among others to protect savers and traders, and many observers are hopeful that such practical steps will make payments smoother and build trust in the formal foreign exchange system. Observers also said steady auctions can build confidence, support exports and remittance flows, and give policy makers room to plan gradual fixes ahead. Farmers who buy fertiliser, students who pay for foreign study fees, and hospitals that import medicines all gain when foreign currency is easier to find. Longer term, stable exchange rates help keep prices steady and make it easier for businesses to plan new hires and investments. confident.
