The dollar rate is showing signs of stability on the market as the country鈥檚 gross foreign exchange reserve has been increasing despite paying nearly $1.5 billion in dues to foreign companies over the past two months.
This growth was largely driven by higher remittance inflows and the Bangladesh Bank鈥檚 halt in dollar sales from its reserve.
According to Bangladesh Bank data, the reserve rose to $19.93 billion on October 16, up from $19.38 billion on September 18.
BB officials said that about $1.5 billion out of $2.5 billion in dues was paid to foreign companies for imports of goods and services such as fertilisers, electricity and oil.
Instead of drawing from its reserve, the central bank sourced dollars from the interbank foreign exchange market, allocating these funds to state-run Sonali Bank for the payments, they said.
The decision to stop selling dollars from the reserve has played a crucial role in stabilising the reserve position and the dollar market, they said.
In addition, both formal and informal markets for dollars have remained stable in recent weeks, with the rates hovering at Tk聽120 a dollar in banks and Tk聽121 on the open market.
The rates have remained at the same position since August.
This shift in the policy came after the political changes on August 5, as the new governor halted dollar sales from the reserve, reversing the previous approach.
Under the previous administration, the central bank faced with a severe dollar shortage starting in December 2021 sold nearly $34 billion from its foreign exchange reserve that depleted the reserve by nearly half from a peak of $48 billion.
BB officials said that increased remittances and exports and declined imports contributed most to the reserve growth and foreign currency market stability recently.
According to Bangladesh Bank data, the remittance inflow rose to $2.40 billion in September compared with that of $1.33 billion in the same month in 2023 after major political changes on August 5.
The inflow was $2.22 billion in August 2024.
Exports increased by 7.89 per cent to $11.75 billion in the July-September period of the 2024-25 financial year compared with those in the same period of the past year.
Imports declined by 1.16 per cent in the July-August period compared with those in the same period past year.
However, according to conventional valuation by the Bangladesh Bank, the foreign exchange reserve increased to $25.18 billion on October 16 from $25.50 billion on September 10.
The Bangladesh Bank adheres to the IMF鈥檚 Balance of Payments and International Investment Position Manual, 6th edition (BPM6), for calculating both the gross international reserve (GIR) and the net international reserve (NIR).
The dollar rate reached Tk聽120 a dollar from Tk聽106 in June 2023, Tk 93.45 in June 2022 and Tk 84.81 in June 2021.
