Staff Report :
The Bangladesh Bank (BB) purchased a further US$83 million from 11 commercial banks in an auction on Sunday, paying between Tk121.47 and Tk121.50 per dollar, as part of efforts to counter a sharp fall in the greenback’s exchange rate. With this latest purchase, the central bank has bought a total
of US$622 million from local banks since 13 July under the prevailing free-floating exchange rate regime. The first such intervention came on 13 July, when US$171 million was bought from 18 banks to halt a rapid decline in the dollar’s value.
Sunday’s cut-off rate was Tk121.50, about 45 per cent lower than the rate on 24 July. Officials said the move aimed to prevent excessive volatility and strengthen reserves, which have been under pressure from higher import bills and global economic headwinds. “Sharp swings, whether up or down, damage market stability. If the dollar weakens too far, exporters and remitters are discouraged,” one central bank source noted.
Since the intervention began, the taka has depreciated by Tk0.85 against the dollar, with the reference rate moving from Tk120.67 on 13 July to Tk121.52 by the close of trade last Thursday. Official figures show forex reserves at US$30.08 billion as of last Wednesday, although under the International Monetary Fund’s calculation method, reserves stand at US$25.06 billion.
Some economists criticised the intervention amid persistently high inflation, arguing that allowing the dollar to fall further – to around Tk110 – could have helped ease price pressures.
In a separate development, the central bank on Sunday eased foreign currency retention rules for “Type B” and “Type C” industrial enterprises operating in specialised economic zones, including Export Processing Zones (EPZs), Private EPZs (PEPZs), Economic Zones (EZs) and High-Tech Parks (HTPs).
The revised policy aligns retention facilities for specialised zone exporters with those available to non-specialised exporters, removing earlier restrictions that had reportedly caused operational challenges. Banks may now allow enterprises to keep export proceeds in a back-to-back settlement pool in foreign currency until related import payments are made.
The retained amount may include both the import settlement portion and the local value-added portion, the latter of which can be held for up to 30 days for admissible foreign currency expenses. During this time, unused funds may be transferred to other banks to settle liabilities of related entities within specialised zones.
After 30 days, any remaining balance must be converted into taka, with at least 20 per cent of the total repatriated funds – 25 per cent for garment exporters – encashed before the rest is credited to exporters’ foreign currency accounts. Exporters without back-to-back arrangements may also retain proceeds for up to 30 days for approved uses, subject to the same encashment rules.
Industry representatives welcomed the change, saying it would ensure regulatory parity, improve operational efficiency, and enhance foreign currency liquidity management.
