Bangladesh’s foreign exchange market is witnessing a significant boost as remittance inflows surged to $2.75 billion in the first 27 days of December. At the current exchange rate of Tk 122 per dollar, this inflow is equivalent to approximately Tk 33,574 crore.
According to data released on Sunday (December 28) by Bangladesh Bank Executive Director and Spokesperson Arif Hossain Khan, the current trend suggests that total remittances for the month are on track to exceed the $3 billion mark. If this milestone is reached, it will provide a formidable foundation for the country’s foreign exchange reserves and market stability.
Year-on-Year Growth and Fiscal Performance
The central bank’s figures highlight a robust upward trajectory in expatriate earnings. The $2.75 billion received so far this month represents a 14.3% increase compared to the $2.41 billion recorded during the same period last year.
The performance for the broader 2025-26 fiscal year is equally promising. From July 1 to December 27, total remittance inflows reached $15.79 billion, up from $13.54 billion during the corresponding period in the previous fiscal year—a growth of 16.6%.
Central Bank Intervenes Amid Dollar Surplus
The sharp rise in remittance has created a surplus of US dollars within the commercial banking sector. To maintain balance between supply and demand and prevent excessive volatility in the currency market, Bangladesh Bank has actively intervened.
On Sunday, the central bank purchased $110 million from three commercial banks through a Multiple Price Auction (MPA). The exchange rate for this transaction was set at Tk 122.30 per dollar.
Key intervention highlights include:
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December Purchases: The central bank has bought $920 million from the market in this month alone.
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Fiscal Year Total: Since the start of the 2025-26 fiscal year in July, Bangladesh Bank has purchased a total of $3.056 billion to stabilize the market.
Drivers of Growth
Central bank officials attribute this surge to several strategic factors:
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Anti-Hundi Measures: Effective crackdowns on illegal money transfer channels (Hundi) have redirected funds into formal banking sectors.
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Incentives: The government’s continued provision of financial incentives for remitters.
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Improved Infrastructure: Enhanced banking services and digital transfer options have made it easier for expatriates to send money home.
This steady stream of foreign currency has provided much-needed relief to the country’s foreign exchange reserves, ensuring a more resilient economic outlook for the remainder of the fiscal year.
