The dollar has crossed Tk128 in Bangladesh’s kerb market as rising fuel and food import bills drive up demand for foreign currency, putting fresh pressure on the taka despite growing remittance inflows and central bank intervention.
A visit to several money exchange houses in Dhaka’s Fakirapool area on Saturday found dollars selling at Tk128.10 and buying at Tk127.80, although Bismillah Money Changer Manager Toffajjal Hossain Khan told TIMES of Bangladesh that rates had remained almost unchanged since last week.
The open-market rate was well above the banking rate. Bangladesh Bank data showed the weighted average interbank exchange rate stood at Tk124.75 per dollar on 12 November, highlighting the gap between formal and informal foreign currency markets.
Money Changers’ Association of Bangladesh (MCAB) President MS Zaman said the ongoing war had driven up global fuel prices, while rising import demand was putting pressure on the dollar market. As banks raised their exchange rates, money changers were also forced to adjust theirs accordingly, he added.
Bankers identified rising foreign currency requirements for petroleum products, liquefied natural gas (LNG) and other energy imports as major factors behind the pressure.
Conflict and geopolitical tensions in the Middle East have pushed up global energy prices, raising Bangladesh’s import bills. Bangladesh Petroleum Corporation (BPC) faces higher fuel payment obligations, while Petrobangla needs substantial foreign currency to settle LNG bills.
Banking sources said BPC alone could require around $800 million for import payments in November.
Bangladesh Bank data showed petroleum product imports increased by around 105 per cent year-on-year to approximately $4.2 billion in the July-September quarter of fiscal 2026-27.
The country’s trade deficit also widened 31 per cent to $7.48 billion during the quarter, reflecting growing pressure from import expenditure.
Adding to the pressure is seasonal demand ahead of Ramadan, with importers preparing to bring in edible oil, sugar, wheat, rice, lentils, onions and chickpeas.
Banks opened import letters of credit (LCs) worth $7.32 billion in October and settled import bills totalling $5.95 billion, according to Bangladesh Bank.
Food imports also rose sharply. During July-September, edible oil imports increased 54 per cent and wheat imports 66 per cent from a year earlier.
Bankers said growing import commitments could keep dollar demand elevated in the coming weeks.
Meanwhile, remittance growth has not been sufficient to offset rising foreign currency demand.
Bangladesh received $2.87 billion in remittances in October, up 12.1 per cent year-on-year, but monthly inflows have remained below $3 billion for five consecutive months.
Industry insiders also fear prolonged conflict in the Middle East could affect the employment, income and remittance-sending capacity of Bangladeshi expatriates working in the region.
Export earnings have increased but failed to keep pace with rising import expenditure, adding to pressure on the foreign exchange market.
To ease the pressure, Bangladesh Bank has resumed selling dollars from its foreign exchange reserves through auctions to commercial banks, seeking to increase liquidity and stabilise the taka.
On 12 November, the central bank sold approximately $205 million to banks at Tk124.74 per dollar.
Bankers, however, said such interventions could provide temporary relief but would not resolve the underlying demand-supply imbalance without stronger foreign currency earnings and more manageable import expenditure.
The central bank has also introduced deferred payment facilities of up to 90 days for imports of 10 essential commodities ahead of Ramadan.
A persistently higher kerb-market dollar rate could raise import costs and add to domestic inflationary pressures. With Bangladesh heavily dependent on imported fuel, food, fertiliser, industrial raw materials and capital machinery, further taka depreciation could push up production and consumer prices, putting additional pressure on household purchasing power.
