Written by The Banking Post
Islami Bank Bangladesh PLC has emerged as the largest supplier of US dollars to Bangladesh Bank under its ongoing foreign exchange market intervention.
The Shariah-based lender sold $1.225 billion to the central bank during the current fiscal year, accounting for nearly one-fifth of the $5.56 billion purchased by the regulator from commercial banks as of mid-April.
The central bank has been buying dollars from banks to stabilise the exchange rate under a free-floating regime, injecting more than Tk 600 billion into the market through these purchases.
Other major contributors include Bangladesh Krishi Bank, Trust Bank Limited, Bank Asia Limited and The City Bank Limited, among others.
Officials said the mechanism allows banks with surplus foreign currency—known as long positions—to sell dollars to the central bank, helping them meet local currency needs while supporting reserve accumulation.
“It’s a win-win situation for both banks and the regulator,” a central bank official said, noting that the move also helps prevent excessive volatility in the exchange rate.
Bankers said strong remittance inflows and subdued import demand have left some lenders with excess foreign currency, creating room to participate in the intervention.
A senior official at Islami Bank said the bank’s strong remittance base has supported its dollar sales, especially as import demand has softened amid economic slowdown. “Otherwise, the exchange rate might drop significantly and hurt remitters,” he said.
At Bangladesh Krishi Bank, Managing Director Sanchia Binte Ali said the bank has also played a role in supporting the economy by selling dollars after meeting external payment obligations, backed by steady remittance inflows.
The central bank’s intervention is expected to continue as it balances exchange rate stability with reserve management in a volatile external environment.
