Dollar hits Tk 123 in inter-bank trade
The US dollar has climbed to Tk 123 in the inter-bank market as stronger demand for foreign currency coincides with slower inflows of remittances and export earnings.
The weighted average inter-bank exchange rate stood at Tk 123 today, up slightly from Tk 122.97 a day earlier, according to the latest Bangladesh Bank (BB) data.
Since the beginning of this month, the weighted average exchange rate has been hovering around Tk 123 per USD.
Banks are now trading the US dollar between Tk 122.70 and Tk 123.75.
For example, Eastern Bank sold dollars to importers at Tk 123.70 today, while buying them from exporters and other sources at Tk 122.70. Prime Bank sold dollars at Tk 123.75 and bought them at Tk 122.75.
Bankers said the dollar has strengthened mainly because of mounting payment pressure in recent months.
They said remittance inflows have slowed after the two Eid months, creating a slight shortage of US dollars in the market.
Syed Mahbubur Rahman, managing director and chief executive officer of Mutual Trust Bank, told The Daily Star that the banking sector is facing payment pressure from government imports, especially fuel and fertilisers, which has pushed the dollar exchange rate slightly higher.
He said remittance inflows have also eased after Eid. Together, these factors have increased pressure on the foreign exchange market.
In June, Bangladeshi expatriates sent home $2.81 billion in remittances, down slightly from $2.82 billion in the same month last year, according to BB data.
The June figure was 18.17 percent lower than the previous month.
In May, remittance inflows reached $3.42 billion, up 15.34 percent from a year earlier, as Bangladeshis living abroad sent more money home ahead of Eid-ul-Azha.
Preferring anonymity, the treasury head of a private commercial bank told The Daily Star that banks came under pressure at the end of June to settle letters of credit (LCs) for government imports and debt servicing, increasing demand for US dollars.
He, however, argued that the central bank’s intervention in the foreign exchange market was not wise.
The central bank has stopped buying US dollars from the market as demand for the currency has increased. The BB has not purchased dollars since June 8.
Between July 2025 and June 2026, the BB bought $6.4 billion from the market as part of its effort to build reserves.
Lower import payments and the central bank purchases of foreign currency helped boost the country’s foreign exchange reserves.
As of July 9, gross foreign exchange reserves stood at $31.90 billion under the BPM6 calculation method, up from $24.44 billion a year earlier, according to BB data.
For all latest news, follow The Daily Star's Google News channel. The inter-bank exchange rate has reached Tk 123 at a time when an International Monetary Fund (IMF) fact-finding mission is visiting Bangladesh to assess the feasibility of the government’s proposal for a loan package worth nearly $4.5 billion.
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