B Mirror Report:  Islami Bank Bangladesh PLC has emerged as the largest contributor to Bangladesh Bank’s ongoing foreign exchange (forex) market intervention, accounting for around one-fifth of the US dollars purchased by the central bank in the current fiscal year.

As part of its intervention strategy under the free-floating exchange rate regime, Bangladesh Bank (BB) bought a total of $5.56 billion from commercial banks between July 13 last year and April 15, 2026, aiming to stabilise the taka-dollar exchange rate.

Of the total amount, $1.225 billion came from Islami Bank, the country’s leading Shariah-based lender, making it the single largest supplier of US dollars in the central bank’s auctions so far in FY26.

According to BB sources, the central bank purchased the $5.56 billion from 39 commercial banks through auction mechanisms, injecting over Tk 600 billion into the financial system in the process.

The top dollar-selling banks include Islami Bank ($1,225 million), Bangladesh Krishi Bank ($1,020 million), Trust Bank ($633 million), Bank Asia ($272 million), City Bank ($258 million), Pubali Bank ($184 million), Dhaka Bank ($181 million), Dutch-Bangla Bank ($173 million), South East Bank ($158 million), Eastern Bank ($140 million), Mercantile Bank ($122 million), United Commercial Bank ($120 million), Jamuna Bank ($111 million), Mutual Trust Bank ($109 million) and Agrani Bank ($105 million).

A central bank official, speaking on condition of anonymity, said BB began purchasing dollars from commercial banks to smooth volatility under the market-based exchange rate system. The mechanism allows banks with excess foreign currency known as long positions to sell dollars to the regulator, helping them meet local currency obligations while also supporting reserve build-up.

“It is a mutually beneficial arrangement for both the banks and the regulator,” the official said.

He explained that banks with higher foreign currency payments than earnings are considered to have short positions, while those earning more foreign exchange than they spend are in long positions, creating a surplus available for sale.

An Islami Bank senior banker, also speaking anonymously, said the bank traditionally leads in remittance inflows, but recent import slowdown due to broader economic weakness has increased its foreign currency surplus.

He said the central bank’s intervention provided an opportunity for banks with long positions to offload dollars while meeting local currency needs.

“This is a timely step. Otherwise, the exchange rate could have fallen sharply, affecting remittance incentives,” he noted.

Meanwhile, Bangladesh Krishi Bank Managing Director Sanchia Binte Ali said the state-owned specialised bank has also played a significant role, supported by strong remittance inflows from expatriate workers.

She said the bank was directed by its board to support essential foreign payments, including in the power sector, which encouraged active participation in the dollar-selling process.

“Alhamdulillah, we continue to receive strong remittance inflows. That is why we were able to sell dollars to the central bank after meeting our external obligations,” she said.