Bangladesh’s commercial banks saw a modest rise in dollar holdings in January 2025, reaching $4,537 million from December’s five-year low of $4,255 million. The increase was driven by a 23.61% year-on-year growth in remittance inflows, totaling $15.96 billion for July–January FY25, and an 11.58% rise in export earnings to $28.97 billion. However, the central bank’s foreign debt repayments in December had significantly drained reserves, which fell from $6,088 million in July to $4,615 million in October. The exchange rate surged from Tk 85.80 in December 2021 to Tk 122 by January 2024, escalating import costs and inflation. The central bank’s dual strategy of halting dollar sales while purchasing reserves has further strained the market. Meanwhile, declining foreign direct investment and rising borrowing costs continue to pressure the economy. Businesses warn that sustained dollar appreciation will deepen inflation, reduce consumer purchasing power, and worsen the economic crisis.
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