Bangladesh Bank moved to steady the foreign exchange market by buying $83 million from eleven commercial banks in a multiple-price auction, Local officials explained that this action was intended to reduce sudden fluctuations and indicate a stable rate for traders. The purchase was accepted at rates between Tk121.47 and Tk121.50 per dollar, with the central bank setting a clear cutoff to guide market expectations and add to the nation’s foreign exchange reserves. Officials said the intervention is part of a careful strategy of measured auctions that aim to limit abrupt moves in the dollar-taka rate while preserving normal market functioning. By providing extra dollars to the market at a transparent price, the central bank seeks to give exporters, importers and remittance senders a clearer signal about likely exchange costs, which helps businesses plan costs and families manage money sent from abroad. The auction used a multiple-price method so participating banks could offer different bids, and the range of accepted prices allowed the regulator to balance market demand with reserve management. Bank representatives who took part said the operation improved liquidity and offered a fair process for placing bids, while market watchers noted that visible central bank action can ease short-term pressure and reduce guesses that cause big swings. Adding dollars to reserves gives the country more flexibility to meet import bills and supports confidence among traders who depend on stable payments for goods and services. For small businesses that order materials from overseas and for households relying on remittances, a calmer market reduces the risk of sudden price changes and makes budgeting easier. The central bank also monitors supply and demand closely and stands ready to use similar auctions if needed, saying this type of intervention is one tool among many to promote smooth trading conditions. Analysts said such steps work best when paired with clear communication so markets understand the intent and do not overreact. In practical terms, the recent purchase sends a message that the central bank will act to prevent disruptive volatility while allowing the exchange rate to find an orderly level. The move is also likely to reassure foreign partners and investors that monetary authorities are attentive to market health. While no action can remove all ups and downs, a transparent auction that adds to reserves and supports liquidity can lower uncertainty, help keep trade flowing, and protect household purchasing power. Overall, the central bank’s $83 million purchase aims to steady the exchange environment, support trade and remittances, and give people and businesses a clearer backdrop for planning and growth. Market participants welcomed the clarity, saying predictable exchange costs make it easier to price exports, secure imports, and plan investment with less short-term worry and support growth.
