Dollar Approaches Tk 124 in Bangladesh Inter-Bank Market on Fuel Import Demand

The US dollar has moved steadily closer to the Tk 124 mark in Bangladesh's inter-bank foreign-exchange market, drawing attention from importers, bankers, and policymakers. As of 29–30 October 2026, the weighted-average inter-bank rate hovered between roughly Tk 123.99 and Tk 124.15, according to market participants and bank quotations. This is one of the higher levels seen in recent weeks and reflects mounting pressure to settle large import payments, particularly for oil and gas.

Commercial banks have quoted spot selling rates in a comparable range. Eastern Bank PLC, for instance, was offering the dollar near Tk 124.35 for spot sales while buying at a lower rate. State-owned banks such as Sonali Bank showed similar spreads. The movement has also been visible in the open or kerb market, where the dollar has firmed in line with inter-bank trends. For businesses tracking the USD to BDT rate daily, even a small rise adds to the cost of imported raw materials, fuel, and intermediate goods.

The primary driver is higher demand for dollars to clear letters of credit (LCs) opened for petroleum products and liquefied natural gas. Global energy prices have remained elevated amid geopolitical tensions, and Bangladesh's import bill for fuel has increased. Data for the early months of the current fiscal year showed import payments rising year-on-year, with petroleum-related outflows particularly strong. When banks need more dollars than are available from regular inflows, the inter-bank rate tends to edge upward.

Bangladesh Bank has stepped in to moderate the pressure. On at least one recent trading day the central bank sold about $122 million from its foreign-exchange reserves to authorised dealer banks. Such interventions help meet immediate LC settlement needs and prevent sharper spikes. While the sales reduce reserves slightly in the short term, the overall stock remains relatively comfortable. Gross reserves calculated under the BPM6 method stood near $31.5 billion in mid-to-late October 2026—still higher than the level recorded a year earlier. Steady remittance inflows have also provided support to the foreign-exchange position.

For importers of fuel, edible oil, fertiliser, and other essentials, a stronger dollar raises landed costs. These higher costs can eventually feed into domestic prices if they are passed through the supply chain. Exporters, by contrast, may benefit from a weaker taka when converting dollar earnings, though many of them also rely on imported inputs. Consumers feel the effect indirectly through fuel prices, transport costs, and the price of goods that contain imported components. Businesses that hedge or maintain foreign-currency accounts are watching the rate closely for planning purposes.

Market observers note that the current level is not a sudden crisis but a gradual adjustment driven by the composition of import demand. The central bank's willingness to supply dollars has so far kept the rise orderly. Looking ahead, the trajectory of the USD to BDT rate will depend on several factors: the pace of oil and gas import LCs, global commodity prices, the volume of remittances, export earnings, and any further policy steps by Bangladesh Bank. If energy prices ease or reserve inflows remain strong, the upward pressure could moderate. Conversely, a sustained rise in import demand could keep the inter-bank rate near or above Tk 124 in the coming sessions.

Businesses and individuals searching for the latest dollar rate in Bangladesh are advised to check authorised bank quotations and official central-bank data rather than relying solely on informal market quotes. The inter-bank market remains the primary reference for large commercial transactions, while the kerb market serves smaller retail needs. As of the end of October 2026, the dollar's approach toward Tk 124 underscores the ongoing balance Bangladesh must strike between meeting essential import requirements and preserving exchange-rate stability.