Bangladesh, home to over 2% of the world’s population, uses the Bangladeshi Taka (৳) as its official currency. The Taka, abbreviated as BDT, is essential for daily transactions, international trade, and remittances. Understanding its history, denominations, and exchange mechanisms is crucial for anyone interacting with Bangladesh’s economy.
History of the Bangladeshi Taka
The Bangladeshi Taka was introduced on March 4, 1972, replacing the Pakistani Rupee at par following Bangladesh’s independence in 1971. Initially, the currency included denominations of ৳1, ৳5, ৳10, and ৳100. Over time, higher denominations like ৳50, ৳500, and ৳1000 were introduced to accommodate economic growth and inflation.
In 2024, the Bangladesh Bank implemented a crawling peg system, stabilizing the Taka’s exchange rate at 117 BDT per USD.
Denominations and Design
Banknotes
Bangladeshi banknotes are issued in the following denominations:
- ৳2
- ৳5
- ৳10
- ৳20
- ৳50
- ৳100
- ৳200
- ৳500
- ৳1000
All banknotes feature the portrait of Bangabandhu Sheikh Mujibur Rahman, the founding father of Bangladesh. Commemorative notes, such as the ৳40 note issued in 2011 to mark the 40th Victory Anniversary, are also in circulation
Coins
Coins are available in denominations of:
- ৳1
- ৳2
- ৳5
Lower denomination coins like poisha have become rare due to inflation
Historical Exchange Rate Trends
Over the past six months, the USD to BDT exchange rate has averaged around 120.67 BDT per USD . The rate has seen fluctuations due to various economic factors.
Factors Influencing Exchange Rates
Several factors affect the Taka’s exchange rate:
- Inflation Rates: Higher inflation can devalue the Taka.
- Interest Rates: Differences between Bangladesh’s and other countries’ interest rates can influence currency value.
- Political Stability: Political events can impact investor confidence.
- Trade Balances: A trade deficit can weaken the Taka.
Exchanging Currency
Within Bangladesh
- Banks: Offer currency exchange services with varying rates.
- Currency Exchange Counters: Found in airports and major cities; convenient but may have higher fees.
- Hotels: Some offer exchange services, though rates may not be favorable.
- ATMs: International cards can withdraw BDT; be aware of associated fees.
Outside Bangladesh
- Currency Exchange Offices: Major cities often have facilities to exchange BDT.
- Banks: Some international banks offer BDT exchange services.
- ATMs: Using Bangladeshi cards abroad may incur fees.
Sending Money to Bangladesh
Methods
- Banks: Wire transfers are secure but may have higher fees and less favorable rates.
- Money Transfer Services: Companies like Remitly offer competitive rates and various delivery options, including bank deposits, mobile wallets, and cash pickups.
Considerations
- Exchange Rates: Monitor rates to maximize the amount received.
- Fees: Compare fees across different services.
- Transfer Speed: Some services offer instant transfers; others may take longer.
FAQ: Bangladeshi Taka (BDT)
What is the official currency of Bangladesh?
The official currency is the Bangladeshi Taka, abbreviated as BDT and symbolized by “৳”.
Who issues Bangladeshi currency?
Most banknotes are issued by the Bangladesh Bank, while the Ministry of Finance prints the ৳1 and ৳2 notes.
What are the current denominations of the Taka?
Notes: ৳2, ৳5, ৳10, ৳20, ৳50, ৳100, ৳200, ৳500, and ৳1000.
Coins: ৳1, ৳2, and ৳5 (lower-value poisha coins are rarely used).
Why does the exchange rate fluctuate?
Exchange rates vary due to inflation, interest rates, political stability, trade balances, and global economic factors.
How can I get Bangladeshi Taka abroad?
You can exchange currency at banks, currency exchange offices, or ATMs that support international withdrawals.
Is it better to exchange money at the airport or in the city?
Airport counters are convenient but often charge higher fees and offer lower exchange rates. City exchange offices usually offer better deals.