Dhaka: Bangladesh Bank (BB) has categorically dismissed speculation regarding an imminent devaluation of the Taka, asserting that the national foreign exchange market remains stable:
According to Bangladesh Sangbad Sangstha, the central bank stated that there is no immediate pressure for currency adjustment due to a significant expansion in banking sector liquidity and a surge in remittance inflows bolstering the country’s external position.
The foreign exchange liquidity in the banking system has appreciated, driven by the momentum of expatriate income. As of April 6, 2026, surplus liquidity in the banking sector reached $3.9 billion, increasing from $2.3 billion on February 26, 2026, marking a liquidity injection of $1.6 billion within a month. Cash foreign currency holdings rose from $47.6 million on February 26, 2026, to $49 million by April 6, 2026, indicating financial stability.
Bangladesh Bank noted that the integration of foreign exchange accounts, cash holdings, and other sources has created a comprehensive pool of funds. This pool facilitates the settlement of daily import costs and external obligations, containing forex market volatility. As of April 6, 2026, Bangladesh’s gross foreign exchange reserves stood at $34.35 billion, providing a security buffer for international trade.
In a display of market confidence, the central bank has refrained from market intervention, despite the Net Open Position (NOP) of commercial banks being approximately 1 billion. Typically, Bangladesh Bank intervenes by purchasing dollars when the NOP exceeds $600-$700 million. However, the bank allowed for natural market liquidity, with officials noting that intervention could have pushed reserves toward $36 billion.
A catalyst for market equilibrium is the trend in remittance earnings. In March 2026, the country recorded its highest-ever single-month remittance inflow of $3.775 billion. This trend continued into April, with $660 million received in remittances from April 1-6, a 20.5% increase from the previous year. This inflow has enhanced the foreign exchange market’s supply side, stabilizing the exchange rate.
The central bank highlighted its fulfillment of international financial commitments, demonstrating economic resilience. Key settlements included $1.37 billion in Asian Clearing Union (ACU) bills and $180 million in government foreign debt payments. The stable reserve of $34.35 billion after these outflows indicates a balance between foreign currency supply and demand.
Bangladesh Bank stated that the dollar market operates on a market-based system where supply and demand are balanced. The central bank summarized the market’s health through three pillars: a balanced supply-demand dynamic, consistent remittance growth, and established market confidence and discipline.
Addressing reports suggesting potential Taka devaluation, the central bank characterized such speculation as inappropriate given the economic data. Officials reaffirmed that with the exchange rate’s stability and the forex pool’s strength, there is no justification for devaluation, and the market remains under disciplined supervision.