Finance Adviser Dr. Salehuddin Ahmed on Tuesday defended the Bangladesh Bank’s (BB) recent purchase of nearly $2 billion from the market, saying the move was necessary to stabilize the exchange rate and strengthen reserves despite easing demand for the US dollar.

“Some argue that if demand for the dollar goes down, the price should also fall. But suppose we let the exchange rate slide. In that case, it will send a bad signal to those who send remittances,” he told reporters after meetings of the Advisors Council Committees on Government Purchase and Economic Affairs.

He stressed the importance of maintaining a reserve buffer against shocks. “Suppose there is a crop failure — we would need to import immediately. What would we do then if we don’t have the cushion?”

BB has purchased $1.74 billion through auctions so far this fiscal year, helping to lift reserves to $25.67 billion as of September 11, according to IMF data — up from $24.50 billion a year earlier. The central bank had sold more than $25bn over the past three years to cover critical imports.

The Government Purchase Committee, meanwhile, approved the import of 35,000 tonnes of MOP fertiliser from Russia at $361 per tonne, valued at Tk 1.54 billion.

The Economic Affairs Committee cleared two major airport project revisions: Tk 6.05bn for runway and taxiway strengthening at Shah Amanat International Airport, and Tk 8.17bn for upgraded radar and surveillance systems at Hazrat Shahjalal International Airport.