After a hiatus of nearly six weeks, Bangladesh Bank has returned to the foreign exchange market to purchase US dollars from commercial lenders, signalling evolving conditions in the external sector driven by robust remittance inflows and easing pressure on the currency market.
On Wednesday (15 April), the central bank acquired $70 million (equivalent to $7 crore) from a single commercial bank through a competitive multi-price auction (MPA) mechanism. The transaction was executed at both an exchange rate and cut-off rate of Tk 122.75 per US dollar.
The latest operation marks the first such intervention since 2 March, when the central bank purchased $25 million from two banks at a lower cut-off rate of Tk 122.30 per dollar. The renewed activity reflects Bangladesh Bank’s ongoing effort to fine-tune liquidity management in the foreign exchange market while maintaining overall exchange rate stability.
Table of Contents
Recent dollar purchase operations
| Date | Amount Purchased | Banks Participating | Cut-off Rate (Tk per USD) |
|---|---|---|---|
| 2 March 2026 | $25 million | 2 banks | Tk 122.30 |
| 15 April 2026 | $70 million | 1 bank | Tk 122.75 |
Since the beginning of the 2025–26 fiscal year, Bangladesh Bank has accumulated approximately $5.5635 billion (about $5.56 billion) through purchases from commercial banks. These operations are part of a broader monetary strategy aimed at absorbing surplus foreign currency liquidity while preventing excessive appreciation of the local currency, which could undermine export competitiveness.
Remittance inflows underpin market stability
The central bank’s renewed intervention comes against the backdrop of a sustained surge in remittance inflows, which has significantly strengthened foreign exchange liquidity. In March alone, Bangladesh recorded a historic high of $3.755 billion in remittances, the largest monthly inflow ever documented. At prevailing exchange rates, this equates to more than Tk 460 billion entering the domestic economy within a single month.
Early data for April indicates that momentum has remained strong, with $1.607 billion received between 1 and 14 April. For the broader period of July to 14 April in the current fiscal year, total remittance inflows reached $27.81 billion, reflecting a robust 20.6% year-on-year increase.
Policy measures and structural support
Bangladesh Bank officials attribute the strong inflow performance to a combination of regulatory tightening and incentives. Enhanced surveillance of informal transfer systems such as hundi, alongside incentives for expatriates and improvements in digital banking channels, has encouraged a greater share of remittances to flow through formal financial systems.
These developments have helped ease pressure on the foreign exchange market, improving liquidity conditions and allowing the central bank greater flexibility in timing its interventions.
Foreign reserves show improvement
According to the latest figures, Bangladesh’s gross foreign exchange reserves stood at $34.87 billion as of 15 April. Under the International Monetary Fund’s BPM6 methodology, reserves were recorded at $30.20 billion, restoring a psychologically important threshold above the $30 billion mark.
Outlook: balance between stability and pressure
Despite recent improvements, analysts caution that vulnerabilities remain. Persistent import demand, external debt servicing obligations, and global economic uncertainties continue to pose challenges to external sector stability.
Nonetheless, the combination of strong remittance inflows and measured central bank intervention is currently providing a stabilising cushion for the currency market. Policymakers are expected to maintain a cautious and data-driven approach in managing liquidity, ensuring stability while avoiding abrupt fluctuations in exchange rates.