Bangladesh Bank has acquired close to $6 billion from the foreign exchange market in the fiscal year 2025-26 as part of ongoing efforts to regulate liquidity and stabilize the exchange rate. The latest data from the central bank shows that $100 million was purchased from six commercial banks at a rate of Tk 122.75 per dollar, bringing the total purchases for the current fiscal year (July to May 18) to $5.98 billion.
Purchasing US dollars has been a consistent strategy for Bangladesh Bank this fiscal year, driven by increased inflows and reduced pressure on the foreign exchange market. In the period from FY21 to FY25, the central bank had sold over $25 billion from its foreign exchange reserves to cover import costs for essentials like fuel, fertilizers, and food. However, a shift occurred at the start of the current fiscal year, with the central bank resuming dollar purchases due to enhanced supply from higher export earnings and remittances.
Augmenting foreign exchange reserves is a key motivation behind Bangladesh Bank’s ongoing dollar purchasing spree. As of May 14 this year, the gross foreign exchange reserves were recorded at $34.31 billion, a notable increase from $25.47 billion in the same period last year. According to the IMF’s BPM6 methodology, reserves were reported at $29.65 billion, up from $20.09 billion the previous year.
In the current scenario, the interbank exchange rate stands at Tk 122.75 per US dollar. Despite the central bank’s strategy to buy dollars, some economic experts have criticized this move, pointing out that allowing the dollar rate to decline further could aid in controlling inflation in Bangladesh.
