Dhaka, March 1 -- Bangladesh Bank now plans to establish a stabilisation fund within its gross foreign -exchange reserves to forestall any volatility on the forex market.

The move comes amid rising concerns over exchange- rate fluctuations that have put pressure on import costs, inflation, and overall stability in the economy.

The proposed fund, estimated to range between $1.0 billion and $1.5 billion, will be deployed as needed to support banks in financing essential imports, particularly during periods of liquidity stress.

At present, banks primarily source foreign exchange from the open market or aggregators when they do not have adequate funds-a practice that often leads to an artificial hike in the value of the U.S. dollar, furthe...