The Bangladesh currency is known as the Bangladeshi taka, and it’s abbreviated as BDT. The taka is the official currency of Bangladesh, and it’s used for all transactions within the country.
The taka is subdivided into 100 smaller units known as poisha. You’ll mostly see banknotes of 2, 5, 10, 20, 50, 100, 500 and 1000 taka denominations. There are also coins of 1, 2, and 5 taka, but they are not widely used.
Understanding the Bangladesh currency is important for anyone traveling to the country. Make sure to familiarize yourself with the current exchange rate and carry enough cash in the local currency to cover your expenses.
Historical Journey of Bangladesh Currency
Bangladesh currency, also known as the Bangladeshi taka, has a rich history that dates back to the early 20th century. The taka was first introduced in 1906 during the British colonial period as the official currency of East Bengal and Assam.
After the partition of India in 1947, East Bengal became the eastern wing of Pakistan and the Pakistani rupee became the official currency. However, the Pakistani rupee also bore the word taka on official notes and coins.
In 1971, Bangladesh gained independence from Pakistan, and the taka became the official currency of the new country. Initially, the taka was pegged to the US dollar at a rate of 1.62 taka to 1 dollar. However, due to various economic and political factors, the value of the taka has fluctuated over the years.
In the early 1990s, the taka was devalued several times, leading to a sharp rise in inflation. In response, the government of Bangladesh implemented economic reforms and introduced a floating exchange rate regime in 1994.
Since then, the value of the taka has been determined by market forces, with the Bangladesh Bank (the central bank of Bangladesh) intervening in the foreign exchange market to maintain stability.
Over the years, the design of Bangladesh currency has also undergone several changes. In 1972, the first series of banknotes was introduced, featuring the portrait of Bangabandhu Sheikh Mujibur Rahman, the founding father of Bangladesh.
The subsequent series featured various historical and cultural landmarks of Bangladesh, including the Shaheed Minar, the national monument of Bangladesh, and the National Parliament House.
Today, the Bangladeshi taka remains an important symbol of the country’s independence and economic progress. With a stable exchange rate and a growing economy, the taka is widely used for both domestic and international transactions.
History of Coins
The history of the Bangladeshi taka traces its origins back to 1947, following the Partition of Bengal, when East Bengal became part of Pakistan as East Pakistan, later becoming Bangladesh in 1971.
The currency, initially the Pakistani rupee, included the term “taka” on its notes and coins. With Bangladesh’s independence in 1971, the taka was officially introduced in 1972, replacing the Pakistani rupee.
Before independence, the Pakistani rupee circulated in Bangladesh, and some Bengali nationalists protested against Pakistani rule by stamping banknotes with “বাংলা দেশ” (Bangla Desh).
These actions led to the Pakistani government declaring such stamped banknotes as no longer legal tender in 1971, also withdrawing high-denomination notes to protect its economy.
Despite some instances of rubber-stamped Pakistani currency used in Bangladesh, there was never an official directive from the Bangladesh Bank or the Ministry of Finance for such measures.
Since its inception, the taka has seen various denominations introduced, from the initial treasury notes in 1972 to the introduction of higher denominations and commemorative notes over the years.
These banknotes often featured national symbols, heroes, and milestones, such as the portrait and watermark of Bangabandhu Sheikh Mujibur Rahman and the National Martyr’s Monument.
Commemorative notes have celebrated significant national events, like the Victory Anniversary of Bangladesh and the anniversary of the Bangladesh National Museum, alongside regular currency updates to improve security features and introduce new denominations.
Coinage in Bangladesh began in 1973 with denominations ranging from 5 to 50 poysha, and later, ৳1, ৳2, and ৳5 coins were introduced, reflecting the country’s cultural and economic milestones.
Over time, due to inflation, smaller denominations became rare in circulation, with recent issues focusing on practical and commemorative purposes. Special editions have marked various national achievements and anniversaries, embodying the nation’s pride and progress.
The evolution of the taka, from its initial introduction to the latest issues and commemorative editions, mirrors Bangladesh’s journey towards building its identity and commemorating its milestones. The currency not only serves as a medium of exchange but also as a repository of the nation’s history, culture, and achievements.
History of Bills
Bangladesh introduced its first banknotes, known as the “Map Series,” on March 4, 1972, starting with 1 and 100 taka notes, and later adding 5 and 10 taka notes. These were emergency issues to replace the Pakistani rupee, with some notes overprinted or stamped in protest against Pakistani rule.
Due to counterfeiting and rumors, a second series was issued, printed by Thomas De La Rue, featuring designs that included the emblem of Bangladesh and various cultural and national symbols.
In parallel, Bradbury Wilkinson printed similar denominations with different designs, leading to two series circulating simultaneously. By 1976, a new series without Sheikh Mujib’s portrait introduced illustrations of the Star Mosque, adding 50 and 500 taka notes.
The fifth series, similar to the fourth but with darker colors and new vignettes, was introduced from 1977 to 1979, without a 500 taka note but adding a 20 taka note.
The 1980s saw redesigned notes and the introduction of a 2 taka note, while the 1990s introduced notes with Sheikh Mujibur Rahman’s portrait on the 10, 50, and 500 taka denominations.
The early 2000s saw the introduction of polymer notes and new designs featuring Bangabandhu in denominations of 10, 100, and 500 taka. However, a subsequent series in the early 2000s omitted his portrait, and in 2008, a 1000 taka note was introduced for the first time.
The latest series of banknotes issued by the Bangladesh Bank includes new designs and security features, with all denominations except the 1 taka featuring a portrait of Sheikh Mujibur Rahman and the National Martyrs’ Memorial watermark.
Inflation and Buying Power of the Bangladeshi Taka
If you are living in Bangladesh, you are likely aware of the high inflation rate that the country has been experiencing in recent years. According to the Bangladesh Bureau of Statistics, the general inflation rate was 9.69% on a point-to-point basis for the month of July 2023.
This has made it difficult for many people to maintain their standard of living as prices for goods and services continue to rise. One of the main factors contributing to inflation in Bangladesh is the rapid growth of the money supply.
As the supply of money grows, the value of the currency decreases, leading to higher prices for goods and services. In addition, external factors such as rising global commodity prices and supply chain disruptions have also contributed to inflation in the country.
As a result of inflation, the buying power of the Bangladesh currency has decreased significantly in recent years. This means that you will need more money to purchase the same goods and services that you could have bought for less in the past.
For example, if you were able to buy a kilogram of rice for 50 taka a few years ago, you may now need to pay 60 or 70 taka for the same amount of rice.
To combat inflation and stabilize the value of the currency, the Bangladesh central bank has taken several measures, including raising the repo rate and introducing a tight monetary policy.
According to the International Monetary Fund, these measures have helped to bring down inflation in the country. However, more needs to be done to address the underlying causes of inflation and ensure that the buying power of the Bangladesh currency is restored.
The Bangladeshi Taka
The Bangladesh Bank has introduced a new series of banknotes, enhancing security features and updating designs.
Except for the 1 taka note, all denominations in this series prominently feature a portrait of Sheikh Mujibur Rahman on the front and the National Martyrs’ Memorial watermark, symbolizing national pride and heritage.
This series, known as the Bangabandhu Series, includes notes of various values, colors, and themes:
৳2
The ৳2 note, issued on 15 July 2021, showcases Sheikh Mujibur Rahman and the Shaheed Minar in Dhaka, with a tan and green color scheme.
৳5
The ৳5 note, released on 5 January 2017, features the Kusumba Mosque in grey.
৳10
The ৳10 note, available since 7 March 2012, depicts the Baitul Mukarram National Mosque in pink.
৳20
The ৳20 note, introduced on 7 March 2012, presents the Sixty Dome Mosque in green.
৳50
The ৳50 note, issued on 15 December 2019, illustrates ploughing, a painting by Zainul Abedin, in orange.
৳100
The ৳100 note, released on 9 August 2011, displays the Star Mosque in blue.
৳200
The ৳200 note, available since 17 March 2020, features Sheikh Mujibur Rahman and themes of agriculture in Bangladesh in yellow.
৳500
The ৳500 note, introduced on 9 August 2011, also focuses on agriculture in Bangladesh, but in cyan.
৳1000
The ৳1000 note, issued on 9 August 2011, portrays the Jatiya Sangsad Bhaban in violet.
Each note’s design is carefully chosen to reflect significant cultural, historical, and national achievements, reinforcing the identity and legacy of Bangladesh through its currency.
Currency Usage in Bangladesh
If you are planning to travel to Bangladesh, it’s essential to know about the country’s currency and its usage. The official currency of Bangladesh is the Bangladeshi taka (BDT), which is abbreviated as Tk. It’s issued by the country’s central bank, Bangladesh Bank.
The Bangladeshi taka is the only legal tender in Bangladesh, and you can use it to pay for goods, services, taxes, and debts. You can exchange your currency for Bangladeshi taka at authorized banks, exchange offices, and hotels.
Is USD accepted in Bangladesh?
Although the official currency of Bangladesh is the Bangladeshi taka, the US dollar (USD) is widely accepted in the country. However, it’s recommended to carry Bangladeshi taka as it’s the only legal tender in the country.
You can exchange your US dollars at authorized banks, exchange offices, and hotels, but the exchange rates may not be favorable at the latter. It’s advisable to exchange your currency at authorized banks or exchange offices to get the best exchange rates.
Exchanging Currency in Bangladesh
If you’re traveling to Bangladesh, you’ll need to exchange your currency for Bangladeshi Taka (BDT) to pay for goods and services. Here’s what you need to know about exchanging currency in Bangladesh.
Where can I exchange Bangladesh currency?
You can exchange your currency at banks, authorized money exchange offices, and hotels in Bangladesh. Banks typically offer the best exchange rates, but they may charge a commission or fee for the service. Money exchange offices and hotels may offer slightly lower exchange rates but may not charge a commission or fee.
It’s important to exchange your currency at authorized locations to avoid scams or counterfeit currency. Look for authorized exchange offices with visible licenses and avoid exchanging money with street vendors or unauthorized individuals.
What to know before exchanging currency in Bangladesh
Before exchanging your currency, it’s important to know the current exchange rate. You can check the current exchange rate online or at exchange offices. Keep in mind that exchange rates may vary depending on the location and the amount being exchanged.
You should also bring your passport with you when exchanging currency as some exchange offices may require it for verification. It’s also a good idea to keep your receipts in case you need to exchange your taka back to your original currency when leaving Bangladesh.
When exchanging currency, make sure to count your money and verify that the amount is correct before leaving the exchange office. If you have any concerns or questions, don’t hesitate to ask the exchange office staff for clarification.
Overall, exchanging currency in Bangladesh is straightforward as long as you exchange your currency at authorized locations and follow the above guidelines.
Choosing Between USD and Bangladesh Currency
When traveling to Bangladesh, you will have to decide whether to exchange your US Dollars (USD) for Bangladeshi Taka (BDT) or use USD directly. Here are some factors to consider when making your decision.
Exchange Rate
The exchange rate between USD and BDT fluctuates daily. It is important to check the current exchange rate before making any transactions. If the exchange rate is favorable, exchanging USD for BDT may be a good choice.
The exchange rate of the Bangladesh currency varies against other currencies, but it’s generally quite stable. You can exchange your foreign currency for taka at banks and exchange offices throughout the country.
Convenience
Using USD directly may be more convenient if you are traveling to popular tourist destinations where USD is widely accepted.
However, in smaller towns and local markets, BDT may be the only accepted currency. It is always a good idea to carry some BDT with you if you need to make purchases in areas where USD is not accepted.
Fees
Exchanging USD for BDT may incur fees, such as commission fees or currency conversion fees. It is important to check with the exchange provider to understand the fees associated with the transaction.
Additionally, using USD directly may result in higher prices for goods and services, as vendors may charge extra fees to cover their currency exchange costs.
Tips
To ensure the smoothest financial transactions during your trip to Bangladesh, follow these tips:
- Before departing, research exchange rates and stay updated on any changes. Bring some Bangladeshi Taka (BDT) for purchases where US dollars (USD) may not be accepted.
- Contact your bank or credit card provider to understand potential fees for card usage in Bangladesh. Compare rates and fees when exchanging USD for BDT to secure the best deal.
- Since cash is predominantly favored and credit cards are limited in acceptance, it’s advisable to carry local currency. While ATMs are accessible in major cities, verify with your bank that your card is compatible with Bangladeshi ATMs prior to departure.
By considering these factors, you can make an informed decision about whether to exchange your USD for BDT or use USD directly when traveling to Bangladesh.
Cost of Living in Bangladesh
If you are planning to visit or move to Bangladesh, it is important to know the cost of living in the country. According to Numbeo, the cost of living in Bangladesh is on average 67.1% lower than in the United States.
A single person estimated monthly costs are $365.7 (40,194.9৳) without rent. Rent in Bangladesh is, on average, 94.2% lower than in the United States.
The cost of living in Bangladesh varies depending on the city you live in. According to LivingCost.org, the cost of living in Bangladesh is $432, which is 2.36 times less expensive than the world average. The website also provides a comparison of prices in 15 cities in Bangladesh.
For example, the cost of living in Dhaka, the capital city of Bangladesh, is higher than other cities in the country.
When it comes to food, Bangladesh offers a variety of options at affordable prices. The average cost of a meal at an inexpensive restaurant is $1.93, according to Travel Safe. Local markets are also a great option for buying fresh fruits and vegetables at a low cost.
In conclusion, the cost of living in Bangladesh is relatively low compared to other countries. While prices may vary depending on the city you live in, food and daily necessities are generally affordable.
Don’t Get Scammed Tips
When traveling to Bangladesh, it is important to be aware of the potential scams that you may encounter when exchanging currency. Here are some tips to help you avoid getting scammed:
1. Exchange currency at authorized dealers
Only exchange currency at authorized dealers, such as banks or money exchange offices. Avoid exchanging currency on the street or with individuals, as they may offer you a better rate, but it is likely a scam.
2. Avoid disclosing personal information
Never disclose your personal information, such as your passport number or PIN, to anyone when exchanging currency. Scammers may try to obtain this information to steal your identity or money.
3. Check the exchange rate
Before exchanging currency, check the current exchange rate to ensure that you are receiving a fair rate. You can use websites such as Remitly or Wise to check the current exchange rate.
4. Count your money
Always count your money before leaving the exchange office to ensure that you receive the correct amount. If you notice any discrepancies, speak up immediately and ask for the issue to be resolved.
5. Be wary of get-rich-quick schemes
Be cautious of get-rich-quick schemes, as they are often scams. For example, the media in Bangladesh recently reported on a group called Metaverse Foreign Exchange (MTFE), which scammed Bangladeshis out of millions of dollars by promising high returns.
By following these tips, you can protect yourself from currency exchange scams and enjoy your trip to Bangladesh with peace of mind.
