After a pause of nearly six weeks, Bangladesh Bank has re-entered the foreign exchange market to purchase US dollars from commercial banks, reflecting shifting liquidity conditions driven by strong remittance inflows and a relatively stabilised currency environment.
On Wednesday (15 April 2026), the central bank bought $70 million (equivalent to $7 crore) from a single commercial bank through a competitive multi-price auction (MPA) mechanism. Both the transaction and cut-off rates were set at Tk 122.75 per US dollar.
The latest operation marks the first intervention of its kind since 2 March, when Bangladesh Bank purchased $25 million from two commercial banks at a slightly lower cut-off rate of Tk 122.30 per dollar. The renewed activity suggests a calibrated approach by the monetary authority to manage excess dollar supply while preventing undue volatility in the foreign exchange market.
Recent Bangladesh Bank dollar purchases
| Date | Amount purchased | Banks involved | Cut-off rate (Tk/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 purchased approximately $5.5635 billion (around $5.56 billion) from the commercial banking system. These operations form part of a broader liquidity management strategy aimed at absorbing surplus foreign currency inflows while maintaining exchange rate stability and safeguarding export competitiveness.
Remittance inflows underpin external stability
The central bank’s return to dollar purchases comes amid a sustained surge in remittance inflows, which has significantly strengthened foreign exchange liquidity across the banking sector.
March 2026 saw a historic peak in remittance earnings, with $3.755 billion received—the highest monthly inflow on record. At prevailing exchange rates, this is equivalent to more than Tk 460 billion entering the domestic economy within a single month.
Preliminary data further indicates continued momentum in April, with $1.607 billion remitted between 1 and 14 April alone. Overall remittance inflows for the July–14 April period of the 2025–26 fiscal year reached $27.81 billion, reflecting a robust year-on-year growth of 20.6%.
Policy support and structural drivers
Bangladesh Bank officials attribute this sustained inflow to a combination of policy measures and structural improvements. Tightened oversight of informal money transfer channels such as hundi, alongside incentives for expatriate workers and enhanced digital banking infrastructure, has encouraged a shift towards formal remittance channels.
The resulting inflow has eased pressure on the foreign exchange market, improving dollar liquidity and allowing the central bank greater flexibility in timing its interventions.
Foreign exchange reserves strengthen
As of 15 April, Bangladesh’s gross foreign exchange reserves stood at $34.87 billion. Under the International Monetary Fund’s BPM6 accounting framework, reserves were recorded at $30.20 billion, restoring a key psychological threshold above the $30 billion mark.
Outlook: stability with underlying pressures
While recent trends indicate improved external sector stability, economists caution that risks persist. Import demand remains elevated, external debt servicing obligations continue to rise, and global economic uncertainty could still affect balance of payments dynamics.
Nevertheless, the combination of strong remittance inflows and selective central bank intervention is currently providing a stabilising buffer. Policymakers are expected to maintain a cautious, data-driven stance in managing liquidity conditions to ensure exchange rate stability while avoiding unnecessary market distortions.