The foreign exchange market continues to play a pivotal role in shaping Bangladesh’s broader economic landscape, driven by the combined influence of import expenditure, export earnings, and, most significantly, remittance inflows from expatriate workers. Millions of households across the country depend on remittances for their daily livelihoods, while these inflows also contribute substantially to maintaining macroeconomic stability and supporting foreign currency reserves.
According to the latest data released by the Bangladesh Bank, the foreign exchange market in Bangladesh remained broadly stable on 18 May 2026. The US dollar was recorded at 122.75 Bangladeshi taka for both buying and selling rates, reflecting a period of relative equilibrium in currency demand and supply conditions. This stability signals a temporary balance between external payment obligations and foreign currency inflows.
Other major international currencies also exhibited only marginal fluctuations. The euro, British pound, Japanese yen, Australian dollar, Singapore dollar, Canadian dollar, Indian rupee, and Saudi riyal all showed narrow spreads between buying and selling rates, indicating limited volatility in the market during the reporting period.
Exchange Rates (18 May 2026)
Currency
Buying Rate (BDT)
Selling Rate (BDT)
US Dollar
122.75
122.75
British Pound
163.53
163.60
Euro
142.60
142.72
Japanese Yen
0.77
0.77
Australian Dollar
87.79
88.00
Singapore Dollar
96.41
96.47
Canadian Dollar
89.17
89.27
Indian Rupee
1.28
1.28
Saudi Riyal
32.55
32.56
Economists suggest that the current stability in the foreign exchange market is largely supported by steady remittance inflows, cautious import management, and a relatively balanced external payment structure. In particular, the garment export sector continues to be a key driver of foreign currency earnings, while remittances from the Middle East remain a crucial pillar supporting household consumption and reserve accumulation.
However, analysts caution that external risks remain significant. Fluctuations in global oil prices, shifts in international interest rates, and geopolitical uncertainties could exert pressure on the exchange rate in the coming months. Additionally, monetary policy changes in advanced economies such as the United States and the Eurozone often have a spillover effect on emerging markets, including Bangladesh.
The central bank continues to monitor the currency market closely, aiming to preserve stability through prudent intervention and policy coordination. While current indicators suggest a controlled environment, long-term stability will depend on sustained growth in export earnings, diversification of remittance sources, and improved efficiency in import management.
Overall, the foreign exchange market currently reflects a calm and balanced outlook, though its future trajectory remains closely tied to evolving global economic conditions.
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