Bangladesh Bank has dismissed speculation regarding an imminent devaluation of the Taka, asserting that the national foreign exchange market remains robustly stable due to a historic surge in remittance inflows.
Through a press release issued on Wednesday, the central bank confirmed that there is no immediate pressure for currency adjustment. Officials cited a significant expansion in banking sector liquidity and a record-breaking momentum of expatriate income as the primary factors bolstering the external position of Bangladesh. As of 6 April 2026, the surplus liquidity in the banking sector reached $3.9 billion, marking a substantial increase from the $2.3 billion recorded on 26 February 2026. This represents a liquidity injection of $1.6 billion within a single month.
The central bank noted that the integration of foreign exchange accounts, cash holdings, and diverse funding sources has created a comprehensive pool of funds. This integrated pool is effectively facilitating the seamless settlement of daily import costs and various external obligations, ensuring that market volatility remains contained. As of 6 April 2026, the gross foreign exchange reserves of Bangladesh stood at $34.35 billion, providing what the bank described as a formidable security buffer for international trade.
In a notable display of market confidence, Bangladesh Bank has exercised significant restraint regarding market intervention. Currently, the Net Open Position (NOP) of commercial banks is approximately $1 billion. Under standard operating procedures, the central bank typically intervenes by purchasing dollars when the NOP exceeds the $600 million to $700 million threshold to stabilise the market. However, despite the NOP surpassing this limit, the bank has refrained from purchasing dollars over the last month to allow for natural market liquidity. Officials emphasised that had they chosen to intervene and purchase dollars, the national reserves would have approached the $36 billion mark.
A primary catalyst for the current market equilibrium is the extraordinary trend in remittance earnings. In March 2026, the country recorded its highest-ever single-month remittance inflow of $3.775 billion. This upward trajectory has persisted into April, with the country receiving $660 million during the first six days of the month, marking a 20.5% increase compared to the same period in the previous year. This consistent inflow has significantly enhanced the supply side of the foreign exchange market, further stabilising the exchange rate.
The central bank also highlighted its successful fulfilment of major international financial commitments, demonstrating the underlying resilience of the economy. Key settlements include $1.37 billion in Asian Clearing Union (ACU) bills and approximately $180 million in government foreign debt payments. The fact that the national reserve remains at a stable $34.35 billion even after these significant outflows indicates a healthy balance between foreign currency supply and demand.
Bangladesh Bank stated that the dollar market is governed by a transparent, market-based system where supply and demand are currently in a state of equilibrium. The bank summarised the health of the market through three key pillars: a balanced and self-sustaining supply-demand dynamic, robust and consistent remittance growth, and firmly established market confidence and institutional discipline. Addressing recent media reports suggesting a potential Taka devaluation, the central bank characterised such speculation as "not expedient" and "entirely inappropriate" given the prevailing economic data. Officials reaffirmed that with the current stability of the exchange rate and the strength of the forex pool, there is no justification for devaluation, and the market remains under disciplined supervision.
