FE REPORT
Published:
The local currency, BDT, continued to weaken against the US dollar over the past month amid stronger import payment pressure and softer remittance inflows.
According to the Bangladesh Bank (BB) data, the weighted average interbank exchange rate again rose to Tk 123.58 per US dollar on Sunday from Tk 122.75 a month back. The highest deal was recorded at Tk 123.60 on the day.
The central bank’s reference exchange rate, calculated as the weighted average of interbank and customer transactions of at least US$100,000, also increased to Tk 123.50 from Tk 122.94 over the same period.
However, the depreciation of local currency has significant impacts on the importers as they had to pay additional money to open import LCs (letters of credit). And it also has implications for inflation.
Bankers attributed such appreciation of the US dollar mainly to higher demand for the foreign currency as import payments picked up in recent months.
They said banks faced increased demand for dollars at the end of June to settle LCs for government imports, particularly fuel and fertiliser, as well as external debt servicing obligations.
Bankers further said remittance inflows slowed after the Eid holidays, reducing the supply of foreign currencies in the banking system and tightening conditions in the foreign exchange market.
Bangladesh Bank has refrained from purchasing dollars from the market since June as stronger demand for the US currency has narrowed its excess supply.
Between July 2025 and May 2026, the central bank bought about $6.3 billion from commercial banks to rebuild the country’s foreign exchange reserves when dollar supply exceeded market demand.
Lower import payments over the past year coupled with the central bank’s dollar purchases, helped improve reserve holdings.
According to Bangladesh Bank data, the country’s foreign exchange reserves stood at $31.96 billion under the IMF’s BPM6 methodology as of July 16 while gross reserves stood at $36.66 billion.
Meanwhile, remittance inflows showed a downward trend in June last.
Expatriate Bangladeshis sent home $2.81 billion during the last month, marginally lower than $2.82 billion in June last year and 18.17 per cent below the inflow recorded in the previous month, according to central bank data.
Source: https://thefinancialexpress.com.bd/bangladesh/dollar-hits-tk-12360-amid-higher-imports-low-remittances
