Whether you’re traveling to Bangladesh or sending money there, you’ll need to convert your currency to the Bangladeshi taka. 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.
- 2011 saw a new series of taka banknotes released, each containing a watermark for security.
Currency Exchange Explained
The taka exchange rate is set by the dealer banks and they change 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 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 the exchange rates include:
- Interest rates
- Inflation rates
- Political and economic stability
- Government debt
- Trade deficits
- Currency demand
These factors affect the exchange rate at any given time.
At the time of publication, the currency exchange rate between USD and BDT is 84.8. That means $1USD is equivalent to $84 BDT.
Other currency pairs vary, and all currency pairs will change often. You can find many free currency converters online with a quick Google search.
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.
Why Is Taka Conversion So High?
There are many reasons it takes many taka to buy a single dollar or pound, and that’s because of Bangladesh’s inflation rate, interest rates, government debt, and the economy’s volatility. That said, Bangladesh is considered to have a healthy economy these days, with a robust GDP that has recently surpassed that of India.
In turn, this growth is likely to make the taka stronger against currencies like the U.S. dollar, Swiss franc, or the Indian rupee.
It’s important to remember that many factors will impact exchange rates at any given time. For this reason, you’re more likely to save money on international transfers with lower fees rather than waiting for a better 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 to taka, GBP to taka, Pakistani rupee to taka, or other, you can transfer money to a Bangladesh bank and they’ll convert the currency automatically. Alternatively, you can send a check in your currency and the recipient or bank will be able to cash it in their local currency. Both methods incur fees, typically a percentage of the money you send.
- Money Transfers: If you are looking 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 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.
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