Even though the pressure in the foreign exchange market has eased, Bangladesh Bank has not stopped buying dollars.
Taking advantage of the strong growth in remittance flows and the increase in the supply of dollars in the market, the central bank has bought dollars again.
According to policymakers, this is not just an immediate market stabilization measure; rather, it is a strategic initiative to strengthen reserves and control the exchange rate.
According to central bank sources, $123 million have been purchased from eight commercial banks for February 23. In this case, the cut-off rate was Tk122.30 per dollar.
As a result, the total amount of dollars purchased so far in the current February has stood at $1,448 million.
In FY26 (from July to February), the total amount of dollars purchased has been $5,381.5 million. That is, Bangladesh Bank is collecting it by increasing the supply of dollars in the market and adding it to the reserves.
One of the major reasons behind buying dollars is the continuous rise in expatriate income.
From February 19 to 21, $182 million came into the country in these three days. And from February 1 to 21, the total remittances came in at $2.3 billion, which was $1.9 billion during the same period last year.
That is, there was a growth of 20.6% in remittances during this period.
From July 1 to February 21 of the current fiscal, the total remittances came in at $2.174 billion. It was $1.787 billion in the same period last fiscal. Thus, the growth in remittances in the first eight months of the fiscal year stood at 21.6%.
Why are people still buying dollars?
According to economists, the supply of dollars in the market has increased slightly in recent months due to remittance flows and export earnings.
As a result, Bangladesh Bank is collecting dollars from the market to keep the exchange rate stable and prevent additional volatility.
On the one hand, it is helping to rebuild reserves, and on the other hand, it is also playing a role in controlling the supply of excess money in the market. Because by buying dollars, the central bank can absorb some of the liquidity in the market.
Analysts say whether it will be possible to continue buying dollars will depend on remittance flows, import demand and external debt repayment pressures. If remittance flows remain strong and import costs are controlled, there will be opportunities to increase reserves further.
Overall, the picture suggests that the market is now somewhat relaxed after the intense period of the dollar crisis. And it is on that occasion that Bangladesh Bank is still buying dollars, which is giving a kind of cautious but positive message in foreign exchange management.
