Bangladesh Bank purchased $10 million from commercial banks through an auction on 23 July to stabilise the exchange rate by supporting the US dollar against the taka.

A deputy governor of the central bank confirmed the transaction, noting that the cut-off rate for the purchase was Tk 121.95 per dollar.

This move marks the third such intervention in just over a week, as the central bank attempts to manage volatility in the foreign exchange market.

The latest auction follows two earlier purchases. On 13 July, Bangladesh Bank conducted its first-ever dollar auction, buying $173 million at Tk 121.50. Two days later, it acquired another $313 million at the same rate.

The interventions came after the dollar weakened by nearly Tk 3 in the local market within a single week, prompting concerns over exchange rate instability.

Since then, the central bank’s targeted purchases at higher rates have contributed to a modest rebound in the dollar’s value. As of Wednesday, the exchange rate in both the remittance and interbank markets had climbed above Tk 122. However, some banks were quoting rates as high as Tk 122.50 when settling import Letters of Credit (LCs).