Bangladesh Bank has purchased $50 million from commercial banks through an auction after nearly three and a half months, responding to falling dollar prices caused by increased supply in the market.

The central bank on Tuesday bought the dollars from four banks at Tk122.75 per dollar. Its last purchase from commercial banks was on May 20. Officials said the dollar rate was relatively low in the morning, with banks buying remittance dollars at Tk122.30–122.40 and settling import liabilities at Tk122.50–122.60.

Around noon, Bangladesh Bank announced its purchase rate at Tk122.75, which influenced the market. By afternoon, many banks began settling LCs and buying remittance dollars at the same rate.

A senior bank official said the move signaled that the central bank would not allow the rate to fall below Tk122.75. Bankers noted that commercial banks currently have ample dollar supply, while import settlement pressure has eased and weak private sector credit flow has reduced demand.

The dollar rate has fluctuated in recent weeks, rising to Tk123.65 late last week and falling to Tk122.00 two weeks earlier. Bankers expect demand to rise next month when Bangladesh Petroleum Corporation payments are due.

Officials said banks were notified of the purchase around 1:00 pm, later than usual, meaning some LCs had already been settled earlier at lower rates.