Taka gains strength against the dollar

In just eleven months under the interim government, the Bangladeshi Taka has staged a remarkable comeback against the US dollar, fuelled by record-breaking remittance inflows and robust export growth. 

This economic resurgence is breathing new life into Bangladesh’s financial landscape, offering relief to a nation navigating macroeconomic challenges.

Data from the Bangladesh Bank (BB) reveals a steady decline in the dollar’s value against the Taka over the past 10 days. As of today, most banks are exchanging dollars at Tk 120.30–121.20, a significant drop from Tk 122.80–122.90 at the start of last week. This shift reflects a strengthened Taka, driven by a surge in foreign currency supply.

A senior BB official attributed the trend to an unprecedented influx of dollars: “The supply of dollars is at its highest in two years, primarily due to increased remittances and export earnings.” The official noted that the dollar’s exchange rate falling to around Tk 120 marks a positive milestone for the interim government’s economic reforms.

Expatriate Bangladeshis have played a pivotal role, sending a record US$30.33 billion in remittances during the fiscal year 2024-25—the highest in the country’s history. This figure represents a 26.80% increase from the $23.91 billion recorded in FY24. The momentum continued into July 2025, with $1.071 billion remitted in the first 12 days alone, averaging $89.25 million daily—a notable rise from the $948 million received during the same period last year.

“Since August 2024, remittances have been on a consistent upward trajectory,” said Abdul Quaium Chowdhury, Deputy Managing Director of Premier Bank PLC. “This surge has provided critical relief to our economy, stabilizing the exchange rate and easing macroeconomic pressures.”

The Taka’s strength is further bolstered by an 8.58% growth in export earnings, which reached $48.28 billion in FY24-25. This robust performance signals Bangladesh’s steady economic recovery, with key sectors like ready-made garments driving growth. The BB official highlighted that government initiatives to curb price manipulation in the capital market and promote exports have been instrumental in this achievement.

“Reaching $48 billion in exports is a testament to our economic resilience,” the official said. “Coupled with record remittances, this has created a favourable environment for the Taka to appreciate.”

Since taking office eleven months ago, the interim government has implemented sweeping reforms to strengthen the economy, streamline administration, and boost public confidence. The BB’s adoption of market-based exchange rates has allowed the Taka to reflect true market dynamics, contributing to the dollar’s downward trend.

“These reforms are building a robust system to foster economic stability,” the BB official added. “The increased dollar supply, driven by remittances and exports, is a direct result of these efforts.”

Source: BSS