Bangladesh Bank resumes dollar sales as import demand rises

Bangladesh Bank has returned to the foreign exchange market as a dollar seller after more than a year, supplying $11.5 million to six banks amid rising import-related demand.

The intervention marks a shift from the central bank's recent role as a buyer of foreign currency. Bangladesh Bank had accumulated roughly $6 billion from the market over the previous 14 months as foreign exchange inflows improved.

The latest move comes as higher global fuel prices and increased import payments put fresh pressure on the local currency. The interbank exchange rate reached Tk 123.35 per dollar, compared with Tk 123.20 the previous day.

Import payments climbed 8.6 percent year over year to $6.44 billion in July, according to central bank data. Petroleum product imports accounted for much of the increase, jumping 83.3 percent to $1.37 billion.

Exports, meanwhile, declined 1.6 percent to $4.35 billion during the month.

Reports cited a Bangladesh Bank official saying the central bank would continue to step into the market when necessary to prevent excessive exchange-rate volatility, adding that the country's reserves remain at a comfortable level.

Foreign exchange reserves stood at $31.36 billion under the IMF's BPM6 methodology on September 10, compared with $25.68 billion a year earlier.