Dollar buying surpasses $5.56b, boosts bank liquidity

Bangladesh's banking system is seeing a fresh liquidity surge as Bangladesh Bank (BB) continues aggressive Dollar purchases, with total acquisition in the current fiscal year now estimated around $5.56 billion, directly injecting Taka into the market and easing funding stress.

The central bank has been buying Dollars consistently from commercial banks to stabilise the exchange rate and absorb surplus foreign currency inflows driven by rising remittances and export earnings. Earlier data showed purchases of over $5.26 billion to $5.38 billion within months of FY26, indicating a continued upward trend toward the current level.

At the core, each Dollar purchase works as a liquidity injection mechanism. When the central bank buys dollars, it pays banks in local currency (taka), effectively increasing money supply without printing new money directly. 

This policy shift was confirmed by the governor, stating liquidity would be injected "by purchasing dollars" instead of printing currency. 

Banks faced liquidity shortages due to earlier Dollar sales and reserve depletion.

Excess liquidity dropped to around Tk1.41-1.55 trillion range during stress periods. After sustained dollar purchase liquidity improves toward Tk 1.62-1.76 trillion range Additional injections like repo operations added Tk 9,178 crore in a single round.

Now, converting $5.56 billion into liquidity impact: Exchange rate ? Tk 122 per dollar Total taka injected ? Tk 67,800 crore (Tk 678 billion) This is equivalent to roughly 40-45 per cent of previous excess liquidity base a major systemic boost, not marginal support.

First, the move is easing immediate cash stress. Banks can now meet withdrawal pressure, salary payments, and trade financing obligations more smoothly as short-term liquidity tightness declines.