Bangladesh Bank has resumed buying US dollars from commercial banks after a six-week pause. On Wednesday, the central bank purchased USD 70 million from one bank at a rate of Tk 122.75 per dollar. The last purchase took place on March 2, when USD 25 million was bought from two banks. Since July of the current fiscal year, the central bank has purchased a total of USD 5.56 billion. Officials said the recent purchase followed a decline in dollar demand as banks cleared earlier dues amid easing market pressure.

The central bank attributed the earlier market volatility to concerns over the Iran conflict, which had prompted banks to prepay foreign obligations. With remittance inflows rising—USD 1.6 billion in the first 14 days of April, up 25% year-on-year—dollar supply has improved. Bangladesh Bank has also set maximum buying rates for interbank and exchange house transactions to curb excessive pricing.

Officials stated that the bank is buying dollars to prevent an abnormal fall in the exchange rate, which could hurt remittance and export earnings. The country’s foreign exchange reserves now stand at USD 34.87 billion, or USD 30.20 billion under IMF’s BPM6 method.