Dbarta24 Report — Breaking a uninterrupted five-and-a-half-year slide, the Bangladeshi Taka has shown clear signs of recovery against the US Dollar, according to a recent report released by Bangladesh Bank on Sunday (September 20).
Between August 30 and September 17, the national currency gained 0.77% against the greenback, dropping from a record high exchange rate of BDT 123.95 per dollar down to BDT 123.00—a recovery of 95 paisa per dollar. On a broader year-on-year scale ending June, the Taka edged up by 0.06%, marking the first period of stability following years of steep devaluation.
Anatomy of a 5.5-Year Decline
The central bank’s chronological overview highlights how sharply the Taka had eroded since the beginning of the decade. At the end of December 2019, the exchange rate stood at BDT 84.90 per dollar. During the onset of the COVID-19 pandemic in 2020, reduced import demand, lower global commodity prices, and steady remittance inflows briefly boosted the currency, taking the dollar down to BDT 84.80 (a 0.12% gain for the Taka).
However, the trajectory reversed dramatically from 2021 onwards due to rising global commodity prices, burgeoning domestic imports, and geopolitical supply chain shocks:
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2021: Increased import demand pushed the dollar to BDT 85.80 by December, causing a 1.18% devaluation of the Taka.
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2022: The outbreak of the Russia-Ukraine war triggered a surge in energy and food prices globally. Coupled with declining remittances and export earnings, the dollar surged by BDT 20.05 (23.37%) to close at BDT 105.85.
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2023: Continued pressure pushed the exchange rate to BDT 110.00 by December (a 3.92% depreciation).
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2024: The dollar climbed another 10 Taka to reach BDT 120.00 by year-end, representing a 9.09% drop for the Taka.
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2025: Depreciation persisted, with the dollar rising to BDT 122.33 by December (a 1.94% drop).
By August 30, the rate peaked at BDT 123.95, representing a total loss of BDT 38.20—or 45.05% of the Taka’s value—since 2021.
Regional Currency Comparison
Bangladesh Bank’s report also benchmarked the Taka against regional currencies over the June-to-June year period:
| Currency | Country | YoY Movement (June to June) |
| Bangladeshi Taka (BDT) | Bangladesh | +0.06% (Appreciated) |
| Indian Rupee (INR) | India | -9.50% (Depreciated) |
| Sri Lankan Rupee (LKR) | Sri Lanka | -10.00%+ (Depreciated) |
| Indonesian Rupiah (IDR) | Indonesia | -9.00% (Depreciated) |
| Malaysian Ringgit (MYR) | Malaysia | +4.00% (Appreciated) |
| Chinese Yuan (CNY) | China | +4.00% (Appreciated) |
| Pakistani Rupee (PKR) | Pakistan | +2.00% (Appreciated) |
While major South and Southeast Asian currencies faced significant downward pressure, the Taka managed to hold steady and join currencies like the Ringgit, Yuan, and Pakistani Rupee in gaining ground.
Economic Impact and Outlook
A stronger Taka offers critical relief to Bangladesh’s broader economy. Protracted currency devaluation directly inflates the cost of imported fuel, industrial raw materials, and essential foods, passing inflationary pressure down to everyday consumers and eroding purchasing power for low- and middle-income households. Furthermore, a depreciated currency inflates the domestic cost of servicing foreign debt.
The recent stabilization and uptick in the Taka’s exchange value should help moderate import costs and ease foreign debt repayment obligations. However, economic analysts note that sustained currency stability will depend heavily on upcoming trends in export earnings, remittance channels, foreign forex reserve levels, and broader global market dynamics.