Bangladesh Bank Buys $129.5m to Stabilise Forex

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Bangladesh Bank continued its intervention in the foreign exchange market by purchasing US$129.5 million from 13 commercial banks on Monday through an interbank spot auction. The move was aimed at containing volatility and maintaining stability in the dollar–taka exchange rate.

According to central bank officials, the amount was acquired under the Multiple Price Auction method at a cutoff rate of Tk 121.75 per dollar. Since July 13, under the prevailing free-floating exchange arrangement, Bangladesh Bank has directly purchased around US$1.88 billion from banks.

A senior central bank official explained that such interventions are vital for stabilising the exchange rate while simultaneously supporting exporters and remittance earners. “Our intervention in the forex market will continue as part of our strategy to maintain stability,” he said, noting that the purchases are also helping to strengthen the country’s foreign exchange reserves.

Reserves have shown a modest rise in recent weeks. Gross foreign exchange reserves stood at US$31.09 billion on Thursday, up from US$30.58 billion a week earlier, based on Bangladesh Bank’s traditional calculation. Under the International Monetary Fund’s Balance of Payments Manual (BMP6) method, reserves were measured at US$26.18 billion, compared to US$25.67 billion in the previous week.

At the same time, Bangladesh has witnessed a sharp increase in remittance inflows. In the first 21 days of September alone, expatriates sent over US$2 billion through formal banking channels, marking a year-on-year rise of 24.3 percent. During the same period last year, the figure was US$1.63 billion.

Daily inflows remain strong, with September 21 alone recording US$128 million in remittances. Between September 18 and 20, another US$133 million was received. By September 20, inflows had reached US$1.9 billion, crossing the US$2 billion mark the following day.

For the ongoing fiscal year 2025–26, remittance earnings have already reached US$6.93 billion, compared to US$5.77 billion during the same period last year. The trend reflects over 20 percent growth in remittances in the July–September quarter compared to the previous fiscal year.

Notably, 2025 has already seen record-breaking remittance inflows, with March posting the highest-ever monthly figure of US$3.29 billion. Analysts believe this steady growth in remittances, combined with the central bank’s active interventions, is playing a crucial role in strengthening the country’s reserves and stabilising its currency amid global economic uncertainty.