Bangladesh Bank buys another $187m to stabilise dollar rate

Bangladesh Bank purchased $187.5 million from commercial banks today (4 January) at a rate of Tk122.30 per dollar as part of its ongoing efforts to keep the exchange rate stable.

With the latest purchase, the central bank has bought a total of $3.32 billion so far in the current fiscal year.

Market insiders said the move is part of Bangladesh Bank's intervention strategy in the foreign exchange market, which began in July last year through auction-based dollar purchases. The initiative is aimed at maintaining balance under the market-based exchange rate regime.

Under this approach, when dollar supply exceeds demand, the central bank steps in to buy dollars to prevent the exchange rate from falling sharply. Conversely, when demand rises, it retains the option to sell dollars to ease pressure on the market.

Bankers noted that dollar demand has declined in recent months due to several factors. These include a reduction in the government's immediate foreign debt repayment obligations, slower business and investment activities, and a fall in imports of capital machinery, all of which have eased pressure on foreign currency demand.

Despite adequate dollar availability in the market, data suggest signs of stagnation in import activities. Private sector credit growth fell to a record low of 6.58% by the end of November last year, reflecting subdued import demand.

On the positive side, remittance inflows, a major source of foreign currency, have shown strong growth. Bangladesh recorded its highest-ever monthly remittance inflow of $3.29 billion in March 2025, driven largely by Eid-ul-Fitr-related transfers. This remains the country's all-time record.

The second-highest remittance inflow was recorded in December of the same year, amounting to $3.22 billion, further strengthening foreign exchange supply in the market.