Bangladesh Bank has stepped up purchases of US dollars from commercial banks to stabilise the foreign exchange market following a sharp rise in inward remittances this year.

Executive Director and Spokesperson Arif Hossain Khan said on Sunday that the central bank acquired $110 million from three commercial banks through a Multiple Price Auction (MPA) at an exchange rate of Tk 122.30 per dollar.

The central bank has acted to prevent significant fluctuations in the exchange rate as commercial banks face a surplus of dollars from the remittance boom.

In December alone, Bangladesh Bank has purchased $920 million, bringing total purchases in the current fiscal year, FY2025-26, to $3.05 billion.

Remittance flows by expatriate Bangladeshis have shown robust growth. Between December 1 and December 27, the country received $2.75 billion, up 14.03 percent from $1.98 billion during the same period last year.

Looking at the broader fiscal year, from July 1 to December 20, Bangladesh received $15.79 billion in remittances, compared with $13.54 billion in the same period of FY2024-25, representing roughly 16.16 percent growth. In November alone, expatriates sent $2.89 billion.

Central bank officials attribute the surge to several key factors, including strict anti-Hundi measures to curb illegal money transfers, effective implementation of remittance incentives and improved efficiency and accessibility of formal banking channels for migrants.

The sustained inflow of foreign exchange has bolstered the country’s reserves to over $32 billion, providing relief to its overall economy.