Last updated on August 19th, 2024 at 05:43 pm
Whether you’re traveling to Bangladesh or sending money there, converting to the Bangladesh currency, the taka, just takes a few simple steps. 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.
Bangladesh currency 101
- The Bangladeshi taka (BDT) is issued by the Central Bank of Bangladesh.
- It’s divided into 100 poisha (sometimes spelled as “poysha”), though most people in the country refer to all money as simply “taka.” That’s because the word taka means money or currency in Bangla.
- Until 1971, the Indian rupee (INR) was used in Bangladesh, when taka banknotes were introduced.
- In 2011, a new series of taka banknotes was released, each containing a watermark for security.
- In Bangladesh, taka notes come in eight denominations: ৳5, ৳10, ৳20, ৳50, ৳100, ৳200, ৳500, and ৳1000.
Currency exchange explained
The taka exchange rate is set by the dealer banks, which buy and sell currency, and it changes based on the current demand and supply. The USD/BDT rates are based on inter-bank exchange rates in Dhaka. When exchanging between BDT and other currencies, the rates will be based on New York and Dhaka closing exchange rates.
This will show you how the taka measures up against your current country’s currency. Say you’ve settled into a new life in the United States—checking the foreign exchange rate of dollar to taka may show that 1 USD = 93.45 BDT.
This simply means that 1 U.S. dollar equates to 93.45 taka at this moment in time. Exchange rates can and do fluctuate, so making the same transfer at another time might get you 90 taka or 95 taka per U.S. dollar. Factors that can influence the exchange rates include:
- Interest rates
- Inflation rates
- Political and economic stability
- Government debt
- Trade deficits
- Currency demand
These factors affect the exchange rate of a currency at any given time.
At the time of publication, the currency exchange rate between the United States Dollar (USD) and Bangladesh taka (BDT) is 93.45. That means $1 USD is equivalent to ৳93.45 BDT, and ৳1 BDT is worth a little more than $0.01 USD.
Other currency pairs vary, and all currency pairs will change often. Some other popular currencies (with their respective currency symbols and rates at the time of publishing this article) are:
- Australian dollar (AUD): $1 to ৳66.03
- British pound (GBP): £1 to ৳115.50
- Canadian dollar (CAD or CDN): $1 to ৳73.36
- Chinese yuan (CNY): ¥1 to ৳13.94
- Japanese yen (JPY): ¥1 to ৳0.70
- Mexican peso (MXN): $1 to ৳4.67
- Pakistani rupee (PKR): ₨1 to ৳0.46
- Thai baht (THB): ฿1 to ৳2.70
World events can have a huge impact on the foreign exchange rate. Anything from a rise in demand for Bangladeshi exports to a major election or a natural disaster can cause the value of the currency to go up or down. These fluctuations make your transfer more or less costly, so keeping an eye on the exchange rate can help you get the most taka for your dollar (or euro, pound, or rupee). There are several online currency converters and conversion tables you can use.
Fortunately, making wise and frugal international 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 help you find a cheap way to send money to those you care about.
Why is the Bangladesh currency conversion rate so high?
There are many reasons it takes so much taka to buy a single dollar or pound. They include Bangladesh’s inflation rate, interest rates, government debt, and the economy’s volatility. Despite those concerns, experts consider Bangladesh’s economy very healthy.
This growth is likely to make the Bangladesh currency stronger against currencies like the U.S. dollar, Swiss franc, or the Indian rupee.
It’s important to remember that many factors will impact currency rates at any given time, and they can change quickly. For this reason, you’re more likely to save money on international transfers with lower fees rather than waiting for a better BDT exchange rate. You can read more at our guide to international exchange rates here.
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.
- Banks: You can convert any number of currencies into taka using a bank. Be it a New Zealand dollar, GBP, Pakistani rupee, or other currency, you can transfer money to a Bangladesh bank and they’ll convert it to taka automatically. The fees for this conversion may vary based on the bank you choose.
- Checks: Alternatively, you can send a check in your currency and the recipient or bank will be able to cash it in their local currency. This method also incurs a fee, typically a percentage of the money you send.
- Money transfers: If you want to reduce the fees you pay, a money transfer service is usually a good alternative to a bank. That’s because these services have different fee structures, and they often offer lower fees overall.
Sending money from Bangladesh
If you’re sending money from Bangladesh to another country, you can either use a Foreign Currency Demand Draft or make an online transfer.
In either case, talk to your bank of choice about your options. Some banks will require you to visit the branch in person to send money outside of Bangladesh, and there may be a minimum or maximum amount. Additionally, you may have to pay a Goods and Services Tax (GST) for each transaction.
Using Remitly to send Bangladesh currency
When it comes to options of where you can send money, 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.
Then, 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.
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 (i.e., a highly visible company with a lot of locations)
- 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 long been a common way to obtain currency—particularly for travelers in airports and train stations—and they offer a quick service that doesn’t require much planning ahead.
Banks also offer a convenient service. It should be noted, however, that banks and currency exchanges are unlikely to be the most cost-effective options. Similarly, while it can be tempting to simply slot your Bangladeshi bank card into local ATMs when you need money, you can quickly rack up processing fees this way.
For this reason, it may be a good idea to open a local bank account if you’re planning a long-term stay in the country. This will help you settle in, and you can avoid the higher costs of moving money from Bangladesh.
For more information on how to set up a bank account as a non-resident, take a look at our guides to opening a bank account in the U.S. and the U.K. We also have guides for France and Spain.
Finding the best Bangladeshi taka exchange rate
When sending money to Bangladesh, the bank or remittance company you choose will handle the calculations of the transfer. However, it’s always good to have a grasp of exactly how your conversion is being worked out. The formula is straightforward:
Original Currency x Exchange Rate = Received Amount
How does this work in the real world? Let’s take three examples involving Bangladeshi taka transfers.
British pound to Bangladeshi taka conversion
Let’s say you’re living in the U.K. and want to send 100 GBP to a loved one back home, and the current exchange rate is 1 GBP = 115 BDT. The calculation would go like this:
100 GBP x 115 BDT = 11,500 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 that charges 6 GBP for sending money to Bangladesh. With the exchange rate of 1 GBP = 115 BDT, this fee comes to 690 BDT.
So, here’s the calculation to see what your loved one will actually receive:
11,600 BDT – 690 BDT = 10,910 BDT
At the time of writing, this same transaction with Remitly has a fee of 0.99 GBP if you take our Economy option. That means you would only pay 113.85 BDT by the exchange rate quoted above, allowing you to get more takas for your pounds.
Euro to Bangladeshi taka conversion
If you’re planning to transfer 100 EUR and the current exchange rate is 99.26 BDT, the calculation is:
100 EUR x 99.26 BDT = 9,926 BDT
Then, just subtract the transfer fee to see what your loved one in Bangladesh will actually receive.
U.S. dollar to Bangladeshi taka conversion
For our third example, let’s look at sending money to Bangladesh from the United States. If we take the hypothetical dollar to taka exchange rate of 1 USD = 93.95 BDT, then the calculation for 100 dollars runs like this:
100 USD x 93.95 BDT = 9,395 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, there are many ways you can send money to Bangladesh. That’s great news, because more options give you more control.
Keep in mind that some methods may be quicker and less expensive than others. If you’re supporting your family and friends with remittances, you naturally want them to receive as much as possible, whether you’re sending $50 USD or $5000 USD. It’s worth taking some time to compare and pick a service that takes the smallest cut.