Islami Bank Bangladesh PLC has become the leading contributor to the Bangladesh Bank’s ongoing foreign exchange (forex) market intervention, supplying the largest share of US dollars purchased by the central bank in the current fiscal year.
Bangladesh Bank (BB) has been actively purchasing foreign currency from commercial banks as part of its intervention strategy under the free-floating exchange rate regime. Between 13 July last year and 15 April 2026, the central bank bought a total of $5.56 billion from the commercial banking sector in order to help stabilise the taka–US dollar exchange rate and manage liquidity in the foreign exchange market.
Out of the total amount acquired, Islami Bank Bangladesh PLC supplied $1.225 billion, accounting for nearly one-fifth of the total dollars purchased during the period. This positions the Shariah-based bank as the single largest seller of US dollars to the regulator among all participating institutions.
According to Bangladesh Bank sources, the foreign exchange was purchased through auctions involving 39 commercial banks. In the process, the central bank injected more than Tk 600 billion into the banking system.
The intervention reflects varying foreign exchange positions across banks. Institutions with surplus foreign currency holdings—known as a long position—have been able to sell dollars to the central bank. In contrast, banks whose foreign currency obligations exceed their earnings are considered to be in a short position.
A senior Bangladesh Bank official, speaking anonymously, explained that the mechanism enables banks with excess foreign currency to offload their holdings to meet local currency requirements. He added that this approach also assists in strengthening the country’s foreign exchange reserves and supports overall market stability.
Major Banks Selling US Dollars
| Rank | Bank | USD Sold (Million) |
|---|---|---|
| 1 | Islami Bank Bangladesh PLC | 1,225 |
| 2 | Bangladesh Krishi Bank | 1,020 |
| 3 | Trust Bank | 633 |
| 4 | Bank Asia | 272 |
| 5 | City Bank | 258 |
| 6 | Pubali Bank | 184 |
| 7 | Dhaka Bank | 181 |
| 8 | Dutch-Bangla Bank | 173 |
| 9 | South East Bank | 158 |
| 10 | Eastern Bank | 140 |
| 11 | Mercantile Bank | 122 |
| 12 | United Commercial Bank | 120 |
| 13 | Jamuna Bank | 111 |
| 14 | Mutual Trust Bank | 109 |
| 15 | Agrani Bank | 105 |
Banking officials noted that Islami Bank has traditionally been a major recipient of remittance inflows. However, they pointed out that import demand has recently declined amid broader economic slowdown, resulting in higher availability of foreign currency within the bank.
A senior official of Islami Bank, speaking on condition of anonymity, stated that the current intervention framework has provided an opportunity for banks with surplus dollar holdings to sell to the central bank. He said this helps maintain balance in the market and prevents excessive depreciation of the taka, which could negatively affect remittance inflows.
Separately, Bangladesh Krishi Bank Managing Director Sanchia Binte Ali said the state-owned specialised bank had been directed by its board to support government priorities, including facilitating international payments in the power sector. She added that strong remittance inflows, supported by expatriate workers, have enabled the bank to participate in dollar sales after meeting external payment obligations.
Overall, the data indicates broad participation from commercial banks in Bangladesh Bank’s forex management operations, with Islami Bank Bangladesh PLC emerging as the largest single supplier of US dollars during the reporting period.