Bangladesh operates under a market-oriented exchange rate regime. Authorized Dealer (AD) banks conduct FX transactions based on market forces, while Bangladesh Bank (BB) monitors developments and intervenes when necessary to prevent excessive volatility and maintain orderly conditions. BB conducts FX interventions primarily through auction-based spot buy and sell operations, ensuring transparency and competitive price discovery. The central bank also publishes an FX Reference Rate (RR) to enhance market guidance, improve pricing benchmarks, and promote discipline in interbank transactions. FX regulations are periodically updated to strengthen transparency, align with international best practices, and safeguard macroeconomic stability and external sector resilience.