Bangladesh Bank has been buying dollars from the market for four consecutive days to maintain stability in the country's foreign exchange market.
At the same time, there is a sign of relief in the macroeconomic environment due to significant growth in expatriate income or remittance flow and the continuation of the increase in foreign exchange reserves.
Recent data from the central bank says that the improvement in the supply situation of dollars has reduced the excess pressure in the market and Bangladesh Bank has taken the opportunity to strengthen the reserves by collecting dollars.
According to Bangladesh Bank data, on Monday (May 11) the central bank bought $45 million from a commercial bank at a cut-off rate of Tk122.75.
As a result, the total dollar purchase amount in May stood at $125 million and the total purchase in the current FY26 increased to $5.798 billion.
The next day, Tuesday (May 12), another $20 million were purchased at the same rate. This brought the total purchases in May to $145 million and the total purchases in the fiscal to $5.818 billion.
On Wednesday (May 13), the central bank purchased another $25 million from two commercial banks. This brought the total dollar purchases in May to $170 million and the total purchases in the fiscal year to $5.843 billion.
On Thursday (May 14), another $40 million were purchased from five commercial banks. As a result, the central bank's total dollar purchases in the first two weeks of May stood at $210 million. The total dollar purchases in the current fiscal year increased to $5.883 billion.
Earlier, on May 5, Bangladesh Bank bought $50 million from three commercial banks. At that time, the total dollar purchase amount in the first five days of May stood at $80 million.
Economists and bankers say that this purchase activity of Bangladesh Bank is playing an important role in preventing excessive volatility in the dollar market and controlling the exchange rate of the Taka.
In the last two years, the central bank had to sell a large amount of dollars in the market to deal with the dollar crisis. However, now the situation is somewhat reversed.
The supply of dollars in the market has increased due to increasing export earnings and remittance flows.
As a result, the central bank is once again getting an opportunity to rebuild reserves by withdrawing dollars from the market.
According to analysts, if there are excess dollars in the market, there is a risk that the value of the taka will increase rapidly, which can negatively affect the competitiveness of exporters.
Therefore, by buying dollars from the market, on the one hand, the exchange rate is being kept stable, and on the other hand, foreign exchange reserves are also being strengthened.
However, analysts warn that relying only on remittances and the central bank's purchase of dollars will not be enough.
It may be difficult to maintain stability in the dollar market if we cannot diversify exports, increase foreign investment and ensure discipline in import management in the long term.
Nevertheless, those concerned see the continuation of remittances, reserves and dollar purchases as positive signals for the economy in the current situation.
