Bangladesh taka gains against US dollar after five and a half years

The Taka has regained ground against the US dollar after five and a half years of continuous depreciation, marking a notable improvement in Bangladesh's foreign exchange market as stronger remittance inflows, improved dollar liquidity and rising foreign exchange reserves ease pressure on the local currency.

According to the latest Bangladesh Bank report, the Taka appreciated by 0.06 percent against the US dollar on a point-to-point basis between June 2025 and June 2026.

The local currency strengthened further by 0.77 percent between August 30 and September 17, 2026, as the dollar rate declined from Tk123.95 to Tk123.00. 

Bangladesh Bank data show that the dollar rate increased from Tk85.80 in 2021 to Tk123.95, before the trend began to reverse in the second half of the current year. 

Chairman of NRBC Bank Md Ali Hossain Prodhania said the strengthening of the Taka, together with rising remittances and higher foreign exchange reserves, would contribute to greater stability in the country's external sector.

He said stronger remittance inflows are increasing the supply of foreign currency in the formal banking channel, while the accumulation of reserves is strengthening the country's capacity to meet import and other external payment obligations.

"It will create a positive image before foreigners and importers," he said, adding that a more stable exchange rate would also help improve confidence among foreign investors and businesses engaged in international trade.

He said a stronger Taka would help reduce the local-currency cost of imports, particularly fuel, food, industrial raw materials, machinery and other imported inputs. 

This could help businesses manage their import bills and reduce cost pressures in the domestic market, he added.

According to him, lower import costs could also help contain inflationary pressure, particularly when global commodity prices remain volatile, as importers would require comparatively fewer Taka to settle dollar-denominated payments.�"BSS