Business Desk — Despite a steady influx of foreign currency into the country, the US dollar continues to appreciate against the Bangladeshi Taka in the interbank market.
In response to the unexpected price surge, Bangladesh Bank has decided to inspect key commercial banks to ensure transparency and curb potential market anomalies.
Over the past week alone, the interbank dollar exchange rate rose by 75 poisha, reaching Tk 123.60 at the start of the week.
Over a three-and-a-half-month span, the rate has climbed by Tk 1.30, with commercial banks purchasing dollars from foreign exchange houses at rates as high as Tk 123.85.
Market Pressures and IMF Dynamics
Financial experts attribute the recent upward pressure to a convergence of factors, including elevated import bills—particularly for energy commodities—alongside heavy foreign debt service obligations and a slight easing in export growth.
Furthermore, ongoing discussions between the government and the International Monetary Fund (IMF) regarding a new loan facility have led the central bank to maintain a hands-off approach, allowing exchange rates to remain market-driven rather than intervening directly.
During a visit from July 12 to 16, an IMF delegation engaged with government officials on key economic reforms, emphasizing market-based exchange rates, banking sector restructuring, revenue growth, and subsidy rationalization.
Central Bank Launches Special Monitoring
To investigate whether speculative trading or manipulation is driving the rate hike, Bangladesh Bank is deploying special inspection teams to major forex-dealing banks.
Supervisors will conduct rigorous reviews of daily foreign exchange transactions, major settlement portfolios, and Net Open Positions (NOP) across selected financial institutions.
Reassuring the market, Bangladesh Bank Spokesperson and Executive Director Arif Hossain Khan affirmed that the central bank remains committed to a market-determined system while staying vigilant against irregularities.
“The central bank is not intervening directly in the dollar market; commercial banks are trading among themselves. However, if any irregularities or unusual practices are detected, necessary enforcement actions will be taken. While major foreign payment obligations have created temporary pressure, we expect the situation to normalize soon.”
Exchange Rate Trends and Strong Remittance Backing
According to central bank data, the interbank dollar exchange rate remained stable at around Tk 122.30 through March. However, upward momentum resumed toward late June, eventually bringing the rate to Tk 123.60.
The current dollar surge occurs despite robust remittance inflows. In the newly concluded 2025–26 fiscal year, expatriate workers sent home a total of $35.59 billion—marking a significant 17.34% growth compared to the previous fiscal year.
While record remittance inflows provide a strong buffer for foreign exchange reserves, high import settlement demands continue to exert short-term demand pressure.
The central bank’s upcoming audits are expected to curb market speculation and stabilize interbank dollar pricing in the weeks ahead.