The Bangladesh Bank has significantly increased its foreign exchange holdings, acquiring over $4 billion from commercial banks through auctions during the current fiscal year. This strategic accumulation highlights a shift in the nation’s liquidity landscape, primarily driven by a surge in inward remittances.
Injections and Exchange Rates
On Monday, 2 February 2026, Arif Hossain Khan, the Executive Director and spokesperson for the central bank, confirmed the scale of these operations. He revealed that in the latest intervention, the central bank purchased $218 million from 16 different commercial banks. This single-day transaction was executed at a rate of 122.30 BDT per US Dollar.
This latest acquisition brings the total volume of dollars purchased by the central bank during the ongoing fiscal year to an impressive $4.15 billion. The spokesperson noted that this intervention is necessary to manage excess supply in the market and ensure exchange rate stability.
The Remittance Surge
The primary catalyst for this liquidity surplus is the extraordinary performance of the expatriate income sector. In January 2026, Bangladesh recorded a remittance inflow of $3.17 billion. This figure represents the third-highest monthly total in the country’s history.
When compared to the previous year, the growth is staggering; the January 2026 figure is 45.41% higher than that of January 2025, which saw an inflow of $2.18 billion. This influx of foreign currency has allowed commercial banks to offload their surplus dollars to the central bank, thereby strengthening the national reserve.
Comparative Analysis of Remittance and Reserves
| Metric | January 2025 | January 2026 | Year-on-Year Change |
| Monthly Remittance | $2.18 Billion | $3.17 Billion | +45.41% |
| Central Bank Purchase | Minimal | $218 Million (Daily) | Significant Increase |
| Cumulative Purchase (FY) | N/A | $4.15 Billion | High Inward Flow |
| Transaction Rate (USD/BDT) | Variable | 122.30 BDT | Stabilised |
Economic Outlook and Stability
The decision by the Bangladesh Bank to absorb these funds suggests a proactive approach to rebuilding the country’s Foreign Exchange Reserves, which had faced pressure in previous years. By purchasing dollars when the supply is high, the bank is creating a buffer against future volatility while preventing an overly rapid appreciation of the Taka, which could affect export competitiveness.
Financial analysts suggest that if the current trend of high remittances continues through the second half of the fiscal year, the central bank may reach its reserve targets ahead of schedule. However, the focus remains on maintaining a delicate balance between market intervention and allowing the currency to reflect its true value.