Bangladesh Bank has resumed purchasing US dollars from the market after a one-and-a-half-month pause. On Wednesday, the central bank bought USD 700 million from a commercial bank at a rate of 122.75 taka per dollar. The last such purchase occurred on March 2, when it acquired USD 250 million from two banks. Executive Director and spokesperson Arif Hossain Khan confirmed the transaction.

From July to April 15 of the current fiscal year, the central bank has purchased a total of USD 5.56 billion. The increase in remittance inflows has prompted banks to sell dollars to the central bank. During the first 14 days of April, remittances reached USD 1.6 billion, marking a 25 percent rise compared to the same period last year. Since the beginning of the fiscal year, total remittances have amounted to USD 27.81 billion, up 20.6 percent year-on-year.

The combined effect of higher remittances and dollar purchases has strengthened Bangladesh’s foreign exchange reserves, which now stand at USD 34.66 billion, or USD 29.97 billion under the IMF’s BPM6 calculation method.