Web Trader MT5
The currency of Bangladesh, issued by Bangladesh Bank. The Taka splits into 100 poisha, but poisha coins have effectively died from inflation; you’ll never see one in circulation today. Notes run from 2 Taka to 1,000 Taka.
The exchange-rate regime is technically a managed float. In practice, Bangladesh Bank intervenes whenever the Taka starts moving in a direction it doesn’t like, which is most of the time. The currency tracks the US dollar within a managed band, with the band itself sliding as needed.
Two flows define the Taka’s value. First, garment exports; Bangladesh is the world’s second-largest apparel exporter after China, and dollar receipts from Western buyers fund most of the country’s import bill. Second, remittances from Bangladeshis working in the Gulf, Malaysia, and Singapore, which run into the tens of billions annually. When either leg weakens, the Taka comes under pressure fast.
Example: Through 2022 and 2023, the Taka depreciated from about 85 per USD to over 110, as global commodity prices spiked Bangladesh’s import bill while remittance growth slowed. Bangladesh Bank burned through reserves trying to slow the slide before eventually allowing the rate to reset.
