In a decisive shift of monetary strategy, Bangladesh Bank (BB) has aggressively intervened in the interbank foreign exchange market, purchasing approximately $3.93 billion during the first seven months of the 2025–26 fiscal year (FY26). This substantial accumulation marks a departure from previous years of reserve depletion and underscores a period of relative stabilisation for the Bangladeshi Taka.
A Strategic Pivot to Accumulation
On Thursday, the central bank continued its buying spree, mopping up $55 million from five commercial banks. The transaction was executed at a cut-off rate of Tk 122.30 per US dollar, a figure that has remained relatively steady amidst improved liquidity. This latest move brings the total dollar intake for January 2026 alone to a robust $798 million.
The banking regulator’s current appetite for the “greenback” stands in stark contrast to the preceding four fiscal years. Between FY21 and FY25, Bangladesh Bank was forced to offload more than $25 billion from its sovereign reserves to settle critical import bills for fuel, fertiliser, and essential foodstuffs. The tide began to turn at the start of the current fiscal year in July, as a surge in export earnings and resilient remittance inflows from the Bangladeshi diaspora eased the perennial dollar crunch.
Reserves and Market Stability
The consistent purchase of foreign currency has acted as a dual-purpose tool for the central bank: it prevents the Taka from appreciating too rapidly—which could hurt export competitiveness—while simultaneously rebuilding the nation’s financial buffer.
| Metric | Value (As of Jan 2026) | Significance |
| Total FY26 Purchases | $3.93 Billion | Reflects improved market liquidity. |
| January 2026 Inflow | $798 Million | Highest monthly purchase in recent history. |
| Gross Reserves | $32.66 Billion | Total foreign assets held by BB. |
| BPM6 Reserves (IMF) | $28.06 Billion | Net usable reserves per international standards. |
Strengthening the National Buffer
According to the latest data released on 22 January, Bangladesh’s gross foreign exchange reserves have climbed to $32.66 billion. However, under the more stringent BPM6 (Balance of Payments and International Investment Position Manual) standards mandated by the International Monetary Fund (IMF), the net usable reserves are calculated at $28.06 billion.
While the IMF figure is lower, it still represents a significant recovery from the lows seen in 2024. Central bank officials remain optimistic, noting that if remittance and export trends persist, the Taka will continue to find its footing, allowing the regulator to further fortify the country’s economic defences against global volatility.