Banks regain forex strength as market liquidity recovers: BB

The banking sector has shown notable improvement in foreign exchange management and market liquidity, with both net open position (NOP) and net foreign exchange holding posting positive trends despite recent import-related pressure, according to the Bangladesh bank (BB).

As of yesterday, banks’ overall NOP, a key indicator of foreign currency exposure, rose sharply to $1.08 billion, reflecting stronger foreign currency management by lenders, the central bank stated in a press statement.

The figure has risen sharply from $107.03 million recorded in June 2023 and $272.70 million in June 2024. It touched $1.12 billion in June 2025 before dipping to $602.71 million in February due to Ramadan import pressure.

The latest rebound indicates that banks have regained strength in managing their foreign exchange positions after seasonal pressure eased, the BB said.

Market liquidity, measured through net foreign currency holding, also recovered strongly, reaching $3.39 billion on April 2, compared with $2.30 billion in February.

The banking sector’s net FX holding stood at $3.40 billion in June 2023, improved to $3.89 billion in June 2024, and slightly eased to $3.50 billion in June 2025, according to the press release.

The BB attributed the improvement to policy support and effective risk management by banks.