Dhaka — Bangladesh Bank continues snapping up dollars from commercial banks despite easing pressures in the foreign exchange market. On February 23 alone, the central bank bought $123 million from eight unnamed banks, sources at the bank said. The transaction settled at a cut-off rate of Tk122.30 per dollar.

That single-day haul brought the bank’s dollar acquisitions for February to $1,448 million so far. For the fiscal year 2025-26, from July through February, total purchases reached $5,381.5 million, according to central bank data. Officials described the strategy as more than short-term stabilization. They called it a deliberate effort to bolster reserves and steady the exchange rate.

Remittances fueled the increased dollar supply. In the three days from February 19 to 21, $182 million flowed into the country. From February 1 to 21, inflows hit $2.3 billion — up 20.6% from $1.9 billion in the same period last year. Over the first eight months of the fiscal year, July 1 to February 21, remittances totaled $21.74 billion, a 21.6% jump from $17.87 billion the prior year.

Economists point to this remittance boom, alongside rising export earnings, as the key driver behind the extra dollars in circulation. Bangladesh Bank is mopping them up to curb volatility. The purchases serve dual purposes: rebuilding depleted reserves and sucking excess liquidity out of the market, analysts explained.

“By absorbing dollars, the central bank controls money supply and prevents the taka from appreciating too sharply,” one economist said. Commercial banks, flush with inflows, welcomed the sales. They offload dollars at rates that still deliver solid profits after covering import needs.

Not everyone sees endless upside. Future buying depends on sustained remittances, controlled import bills, and manageable external debt payments, according to market watchers. Strong inflows and tame import growth could allow reserves to climb higher. A slowdown in any area might force a pause.

The dollar crisis that gripped Bangladesh for months has faded. Reserves, which dipped perilously low last year, now show signs of recovery. Bangladesh Bank’s steady purchases send a signal of prudent management. Policymakers aim to avoid past mistakes, when reserves plummeted below three months of import cover.

February’s pace outstrips January’s, when the bank bought less amid tighter supplies. Officials expect remittances to hold firm, thanks to incentives like cash pick-up options and higher exchange rates for expatriates. Export sectors, including ready-made garments, also chipped in with better dollar earnings.

Still, challenges loom. Global factors — oil prices, geopolitical tensions — could spike import costs. Debt repayments to multilateral lenders add pressure. Bangladesh Bank treads carefully, balancing reserve growth against these risks.

For now, the spree continues. Banks report ample dollar stocks, and the central bank shows no signs of slowing. The latest buys reinforce a narrative of stabilization after turmoil.