The Bangladeshi taka strengthened against the US dollar in August amid improved foreign exchange liquidity and a weaker greenback globally, while Bangladesh Bank (BB) intervened to maintain market stability, the central bank said.

The taka rose to 121.40 per US dollar on August 10 from 122.30 at the end of July. BB purchased a net $454 million through foreign currency auctions during the month, keeping the interbank rate broadly stable at 121.69 per dollar by month-end.

Interbank transactions, mainly spot and swap deals between authorised dealer banks, slowed in August, with average daily spot trades dropping to $33.23 million from $40.75 million in July.

The share of spot trades in total interbank activity also slipped to 30.22 percent from 32.14 percent a month earlier.

The central bank noted that strong foreign currency inflows and subdued import growth have put appreciation pressure on the taka since June 2025.

Rising liquidity and this pressure prompted BB to step in with currency purchases in line with its intervention strategy.

Meanwhile, gross international reserves, measured under BPM6, increased to $26.18 billion at the end of August from $24.78 billion in July, mainly due to BB’s market interventions and commercial banks’ deposits to settle Asian Clearing Union liabilities.