The Bangladesh Bank sold a record $205 million to commercial banks on Wednesday (November 12) in a bid to ease acute pressure on the foreign exchange market. The intervention came after the dollar hit an unprecedented Tk 124.86 during intraday trading, the highest level ever recorded in Bangladesh's history.

Central bank intervention stabilizes market

Following the auction, remittance houses, which had set their dollar selling rates between Tk 125.30 and Tk 125.40 earlier in the day, reduced their rates to below Tk 125. The move provided some relief to the exchange rate, which had been under severe strain due to supply-demand imbalances in the market.

Context of the record dollar surge

The sharp depreciation of the taka has raised concerns among importers and exporters, who are closely monitoring the situation. Market insiders attribute the volatility to a combination of factors, including import payment pressures and fluctuations in remittance inflows. The central bank's dollar sale is part of its broader strategy to stabilize the currency market.

Other economic developments

On the same day, the Bangladesh Bank announced plans to issue Tk 3,000 crore in short-term Sukuk bonds with a profit rate of 7.5 percent. Separately, the cost of printing primary school textbooks has increased by Tk 23.67 crore across 94 lots, adding fresh financial pressure on the education sector.

Outlook and next steps

Economists suggest that sustaining remittance growth and boosting export earnings are critical to maintaining long-term stability in the foreign exchange market. While the central bank's continued dollar sales may offer temporary relief, structural reforms are needed to address the underlying vulnerabilities in Bangladesh's external sector.