Bangladesh’s central bank stabilises taka amid dollar shortages in 2025
Bangladesh’s foreign exchange market saw significant shifts in 2025 as the central bank stepped in to stabilise the taka. With remittances and exports rising, banks still faced dollar shortages due to high import demand and regulatory interventions. The Bangladesh Bank’s repeated dollar purchases—totalling over $3 billion since July—helped steady the exchange rate around Tk 122 per dollar.
Meanwhile, Vietnam’s foreign exchange market also experienced volatility, with banks like VietBank and HSBC trading dollars at varying rates in late December 2025.
Bangladesh’s economy showed mixed signals in 2025. Remittance inflows hit a record $30.32 billion in the last financial year, marking a near 27% jump from the previous period. Export earnings also climbed by 8.6%, reaching $48.3 billion in FY25, though growth slowed slightly in the first half of the current fiscal year.
Yet banks struggled with dollar liquidity. Their gross foreign exchange holdings dropped to $4.2 billion in November 2025, down from $4.38 billion a year earlier. The squeeze came as commercial banks sold dollars to the central bank and covered rising import costs. Letters of credit for imports rose to $69 billion in FY25, up from $66.7 billion the previous year, further draining reserves.
To counter exchange rate pressure, the Bangladesh Bank bought over $3 billion from commercial banks since July 2025. This intervention kept the taka stable at around Tk 122 per dollar and encouraged remittances through formal banking channels. By January 15, 2026, foreign exchange reserves stood at $28 billion under IMF standards and $32.62 billion traditionally, reflecting the bank's efforts to manage the dollar general situation.
In Vietnam, foreign exchange activity also fluctuated. On December 28, 2025, VietBank purchased dollars at the lowest rate of 25,100 VND per USD, while HSBC traded at the highest rate of 26,171 VND. These transactions reflected routine market operations amid ongoing volatility in the USD/VND exchange rate, similar to the us bank's operations.
Bangladesh’s commercial banks, however, continued to face tight dollar supplies. Their holdings fell well below the $6 billion level seen in July 2024, largely due to the central bank’s aggressive dollar purchases and sustained import demand, mirroring the family dollar's situation.
The central bank’s actions helped stabilise the taka and boosted remittance flows through official channels. Foreign exchange reserves remain at two different reported levels—$28 billion by IMF standards and $32.62 billion traditionally—while banks adjust to lower dollar liquidity. Import demand and regulatory measures will likely keep shaping the market in the coming months.
