Dhaka: With the interim government marking one year since assuming power after last year’s student-led mass uprising, Bangladesh’s foreign exchange market is exhibiting robust stability. This positive trend is attributed to a healthy influx of inward remittances, an increase in export earnings, and effective measures against money laundering.
According to Bangladesh Sangbad Sangstha, the Bangladesh Bank’s data indicates that the inter-bank selling rate of the US dollar decreased by Taka 2.20 in just five days, from Taka 122.3 on July 9 to Taka 120.1 on July 14. The buying rate was recorded at Taka 119.5 on the same day. To manage fluctuations, the central bank has intervened by purchasing $496 million from commercial banks. Despite the stronger taka helping to ease inflation, officials warn that a rapid decline in the dollar rate may adversely impact exporters and remitters.
Due to the central bank’s intervention, the inter-bank exchange rate for selling the US dollar was at Taka 122.89 on August 3, 2025. Following the Covid-19 pandemic, the taka experienced depreciation against the dollar due to instability in the foreign exchange market, caused by both global and local economic turmoil. Since July 2022, the taka depreciated by approximately 30%.
Industry experts have linked the recent appreciation of the taka to several factors, including a surge in remittance inflows totaling $30.33 billion in FY 2024-25, a reduction in illegal cross-border transactions, and money laundering, along with the disbursement of funds from multilateral lenders. To meet the conditions of a $4.7 billion loan program from the International Monetary Fund (IMF), the central bank adopted a more flexible exchange rate regime in May, which helped stabilize the market contrary to initial concerns of further depreciation.
The stability has also led to an increase in the country’s foreign currency reserves. As per the latest data from Bangladesh Bank, the gross reserves reached $30 billion by July 24, 2025. However, according to the IMF’s methodology, Bangladesh’s net reserves stand at $24.99 billion.
Planning Adviser Dr. Wahiduddin Mahmud noted an increase in remittance inflow due to improvements in the balance of payments and the stable Taka-Dollar exchange rate. He emphasized that the market-based exchange rate decision did not lead to volatility, thus increasing confidence in the taka.
General Economics Division (GED) member of the Planning Commission Dr. Monzur Hossain highlighted that the stable exchange rate between mid-June and early July 2025, fluctuating only slightly within the Tk.122.45-Tk. 122.70 per USD range, supports trade planning and business confidence. This currency stability reflects steady performance and sound policy management in Bangladesh’s external sector.
Bangladesh Bank Executive Director and Spokesperson Arif Hussain Khan stated that a declining dollar trend is not favorable for the market, necessitating regulatory intervention to maintain forex market stability. Excessive weakening of the dollar could discourage exporters and remitters.
The country’s export earnings saw an 8.58 percent growth in fiscal year 2024-25, reaching a total of $48.28 billion, indicating economic recovery and contributing to the taka’s strength against the US dollar. Bangladesh’s exports rose 25 percent year-on-year to $4.77 billion in July, driven by strong growth in the readymade garment (RMG) sector.
Administrator to the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Md Hafizur Rahman acknowledged the resolution of issues in opening Letters of Credit (LCs), with importers now facing no crisis due to the availability of dollars and a stable exchange rate.
Deputy Managing Director of Premier Bank PLC Abdul Quaium Chowdhury noted that consistent increases in remittances since August 2024 have provided crucial economic relief to a nation previously stressed by macroeconomic challenges.