Dhaka, Bangladesh (BBN) - The Bangladesh Taka (BDT) weakened further against the US dollar on Thursday, highlighting the persistent demand-supply imbalance in the country's foreign exchange market.
Key market developments:
📌 Bangladesh Bank's Spot Reference Exchange Rate (RR) increased to BDT 123.1787/USD, from BDT 122.9961 in the previous session—a depreciation of more than 18 paisa in a single day.
📌 The maximum interbank selling rate for Bills for Collection (BC) rose to BDT 123.60/USD, compared with BDT 123.40 a day earlier.
📌 Banks also increased their remittance procurement rates to BDT 123.50/USD, up from BDT 123.20, reflecting stronger competition for foreign currency amid relatively lower inward remittance inflows.
The immediate trigger appears to be stronger US dollar demand for import payment settlements, particularly by government entities. Large import-related payments typically create temporary spikes in dollar demand, pushing up exchange rates across both the interbank and customer markets.
At the same time, slower remittance inflows have reduced the supply of foreign currency. To attract available dollars, banks have raised their buying rates for remittances, which in turn has contributed to higher market exchange rates.
The simultaneous increase in the:
suggests that the foreign exchange market remains under demand-side pressure.
Although Bangladesh has transitioned toward a more market-based exchange rate regime, these movements indicate that liquidity conditions in the FX market remain tight, with import demand continuing to outpace dollar inflows.
The direction of the exchange rate in the coming weeks will largely depend on:
✅ The pace of remittance inflows after Eid,
✅ Export receipt realization,
✅ The size and timing of import payment obligations,
✅ Government external financing inflows, and
✅ Bangladesh Bank's liquidity and FX market management.
The current trend reinforces a broader message: Bangladesh's FX market remains highly sensitive to shifts in dollar demand and supply, making sustained foreign currency inflows critical for exchange rate stability.
BBN/SSR/AD