Relocated from Bangladesh to settle in a new country? One of your big concerns may be to provide financial support for loved ones back home. But you may also be wondering about fees, exchange rates, and how to get the most taka for your money when you make remittances.
Picking the right transfer method is crucial. But it’s also good to have a more general understanding of the different elements you should factor in when sending money to Bangladesh. Here’s everything you need to know when converting pounds, dollars, euros or any other currency to taka.
Currency exchange explained
To know what the current value of Bangladeshi takas is, you need to check the exchange rate. This will show you how takas measure up against your current country’s currency. Say you’ve settled into a new life in the United States – checking the exchange rate may show that 1 USD = 86.25 BDT.
This simply means that one US dollar equates to 86.25 taka at this precise moment in time. Exchange rates can and do fluctuate, so that making the same transfer at another point in time might get you 85 taka, or 89 taka – you get the idea. Factors that can influence these fluctuations include:
- Interest rates
- Inflation rates
- Political and economic stability
- Government debt
- Trade deficits
- Currency demand
If, say, there’s a rise in demand for Bangladeshi exports, or a major election, or a natural disaster – any such events can have a real impact on the exchange rate. The golden rule to remember is that sending money to Bangladesh can cost you different amounts from transfer to transfer.
Fortunately, making wise and frugal money transfers doesn’t necessarily mean keeping up with the latest decisions made by the Bangladesh Bank or Prime Minister Sheikh Hasina’s cabinet. Doing some research and choosing a fairly-priced remittance company can make all the difference if you want to find a cheap way to send money to those you care about.
Sending money to Bangladesh: converting to taka
Gearing up to convert dollars, euros, pounds or another currency to Bangladeshi takas? There are two main options: to do it through your bank, or a specialist money transfer company.
Bank: It’s natural to consider your bank for making a transfer, whether it’s USD to BDT, EUR to BDT, GBP to BDT, or any other exchange. It requires little effort as your money’s already there in your account, and you won’t need to create an account anywhere else.
Specialist transfer company: If getting the most taka for your money is a priority for you, it’s well worth considering a specialist money transfer company. These days, there are online-only services that don’t have to pay running costs for physical retailers. This means they can pass on those savings to their customers, in the form of lower fees.
Using Remitly to send taka to Bangladesh
Thanks to our partnerships with major financial institutions, our Bangladeshi customers can use Remitly to send money directly to a range of known and trusted banks back home.
To begin using Remitly, simply create an account through our website or app. Some basic personal details are needed – like your name, phone number and chosen payment method. After that, enter the details relating to your recipient, and you can go ahead with the remittance. (We may ask for additional documentation depending on the amount sent or if we are unable to verify your identity.)
It’s worth noting that bank deposits aren’t the only delivery method for Bangladeshis abroad. You might prefer to send the funds to your recipient’s mobile money account. Or, if they don’t have a bank or digital account, they can simply turn up to a cash pick up location to collect your transfer as banknotes.
To find out the latest Remitly exchange rates, look here.
What about exchanging taka outside of Bangladesh?
If you’re outside Bangladesh and looking to exchange taka for the local currency – whether that’s euros, pounds, dollars or anything else – there are a few different options on the table. You could:
- Use a high street currency exchange
- Purchase the local currency at a bank
- Draw local currency from ATM machines
The instinctive choice for many people is to head for currency exchange desks. They’ve been the traditional way to obtain currency for generations – particularly for travellers in airports and train stations – and they offer a quick service which doesn’t require much forward planning. Banks, too, offer a convenient service. It should be noted, however, that these options are unlikely to be the most cost-effective. Similarly, while it can be tempting to simply slot your Bangladeshi bank card into local ATMs when you need money, processing fees can rack up rapidly this way.
For this reason, it can be a good idea to open a local bank account if you’re intending to stay in the country for a protracted period. This will help you settle in, and will remove the higher costs of moving money from Bangladesh.
Finding the best Bangladeshi taka exchange rate
When sending money to Bangladesh, the calculations regarding the transfer will be carried out by the bank or remittance company. That being said, it’s always good to have a grasp of exactly how it’s being worked out. The formula is straightforward:
Send Currency x Exchange Rate = Receive Amount
How does this work in the real world? Let’s take three examples involving Bangladeshi taka transfers.
How to find British pound to Bangladeshi taka rates
Let’s say you’re living in the UK and want to send 100 GBP to a loved one back home, and the current exchange rate is 1 GBP = 116 BDT. The calculation would go like this:
100 GBP x 116 BDT = 11,600 BDT
This isn’t quite the end of the story, though. You also need to factor in the transfer fee, which has to be deducted from the amount above. Let’s say you’re making the transfer through a hypothetical bank which charges 6 GBP for sending money to Bangladesh. This equates to 696 BDT. So, here’s the calculation to see what your loved one will actually receive:
11,600 BDT – 696 BDT = 10,904 BDT
At the time of writing, this same transaction with Remitly has a fee of 0.99 GBP if you take our Economy option. This would equate to only 114.84 BDT, by the exchange rate quoted above, providing a substantial saving compared to the example scenario outlined here.
How to find euro to Bangladeshi taka rates
If you’re planning to transfer 100 EUR and the current exchange rate happens to be 99.26 BDT, the calculation is:
100 EUR x 99.26 BDT = 9,926 BDT
You then just have to subtract the relevant fees to see what your loved one will actually receive in Bangladesh.
How to find US dollar to Bangladeshi taka rates
For our third example, let’s look at sending money to Bangladesh from the United States. If we take the hypothetical exchange rate of 1 USD = 86.25 BDT, then the calculation for 100 dollars runs like this:
100 USD x 86.25 BDT = 8,625 BDT
As before, you just have to deduct any fees to get the final taka amount your recipient will pick up back home.
Getting the best deal
As we’ve seen, sending money to Bangladesh can be done in a number of ways. That’s great news, as it’s always good to have options. The main point to bear in mind is that some methods may be quicker and less expensive than others. Anyone supporting their family and friends will naturally want them to receive as much as possible with each and every remittance, which is why it’s worth taking some time to compare what’s on offer, and pick a service that takes the smallest cut.
Remitly is an online money transfer company that makes sending money abroad easier and less costly. We are proud to have millions of customers across the world who rely on our website and app to transfer money to the people who matter most in their lives. You can check out our website to find out more, or download our mobile app to try our service for yourself.