The US dollar has dropped by Tk 3.3 against the Bangladeshi taka within just a week, driven by a decline in demand and a strong inflow of foreign currency.
On Monday, banks purchased dollars at rates between Tk 119.5 and Tk 120, a significant decrease from Tk聽122.80鈥�122.90 just a week earlier, on July 7.
Bankers said that the ongoing trade and tariff discussions with the United States, a slowdown in investments, and increased inflows from remittances and exports in unison have contributed to the plunge in dollar rate.
With fewer import letters of credit (LCs) being opened and many banks eager to offload their dollar holdings, the demand of dollars in the market has reduced considerably, they said.
To slow the decline, the central bank purchased about $177 million from banks on Sunday, injecting liquidity in taka and easing pressure on the foreign exchange market.
Bangladesh Bank officials have expressed concern over the rapid fall in the exchange rate, fearing it could hurt remittance inflows and reduce the competitiveness of export earnings.
This recent drop marks a notable shift in the exchange rate trend.
Since December 2021, the dollar had steadily appreciated against the taka, climbing from Tk 84.81 in June 2021 to Tk 93.45 in June 2022, and reaching Tk 106 in June 2023.
On December 24, The Bangladesh Bank requested certain banks not to purchase dollars above Tk 123, amid growing criticism of its poor oversight, which has driven the greenback鈥檚 price to an alarming Tk聽128 against taka.
This trend reflected the volatility and acute demand of dollars in the market during the last four years.
On May 14, 2025, Bangladesh Bank announced a shift from its long-standing managed exchange rate regime to a market-based system amid recommendation from International Monetary Fund.
Bankers say the dollar demand was also linked to the government鈥檚 directive for state-owned banks to clear all overdue foreign payments by December 2024.
With most of those obligations now settled and little new demand arising, especially due to minimal investment activity, now dollar buying has slowed considerably.
Currently, most imports are limited to essential consumer goods, while imports of capital machinery and raw materials remain subdued due to sluggish industrial activity.
On the other hand, remittance inflows have remained strong and export earnings are holding steady, further boosting the supply of dollars.
As these trends continue, many in the banking sector expect the dollar to fall further in the coming days.
