Ending a continuous depreciation trend spanning five and a half years, the Bangladeshi Taka (BDT) has shown signs of appreciation against the US dollar (USD), according to a Bangladesh Bank (BB) report released on Sunday.
On a point-to-point basis from June last year to June this year, the value of the Taka appreciated by 0.06 percent. Furthermore, between August 30 and September 17, the local currency strengthened by 0.77 percent against the greenback.
Central bank data shows that the Taka experienced an unbroken streak of depreciation against the US dollar from 2021 until September 17 this year. During this period, the exchange rate surged from Tk 85.80 per dollar to a record high of Tk123.95—reflecting a devaluation of Tk38.20, or 45.05 percent.
However, the trend began reversing in the second half of this year. After peaking at Tk 123.95 on August 30, the dollar rate dropped by 95 paisa to Tk 123.00 on September 17, resulting in a 0.77 percent gain for the Taka over those three weeks.
According to central bank statistics
End-December 2019: The dollar traded at Tk 84.90.
End-December 2020: The dollar fell by 10 paisa to Tk 84.80, appreciating the Taka by 0.12 percent due to lower pandemic-era import demand, reduced global commodity prices, and robust remittance inflows.
End-December 2021: Rising import demand and surging global prices pushed the dollar to Tk85.80, devaluing the Taka by 1.18 percent.
End-December 2022: Fueled by the Russia-Ukraine war, global fuel and commodity prices spiked, increasing import bills while exports and remittances slowed. The dollar jumped to Tk105.85—a Tk 20.05 or Tk23.37 percent increase—devaluing the Taka by an equivalent margin.
End-December 2023: Continued pressures raised the dollar rate by Tk4.15 or 3.92 percent to Tk 110.00.
End-December 2024: The dollar climbed another Tk 10.00 to Tk 120.00, eroding the Taka’s value by 9.09 percent over the year.
End-December 2025: Depreciation persisted as the dollar reached Tk122.33, up Tk 2.33 or 1.94 percent over the year.
The Bangladesh Bank report also compared regional currency movements from June last year to June this year
Depreciated Currencies: The Indian Rupee depreciated by nearly 9.5 percent, the Sri Lankan Rupee lost over 10 percent, and the Indonesian Rupiah declined by around 9 percent.
Appreciated Currencies: The Malaysian Ringgit and Chinese Yuan both gained nearly 4 percent, while the Pakistani Rupee appreciated by around 2 percent.
The central bank noted that after a prolonged period of weakening, the Bangladeshi Taka has shifted to a relatively stronger position.
Economic Implications
A depreciating Taka directly elevates import costs for fuel, industrial raw materials, and food items, passing price increases onto consumers, driving inflation, and dampening real purchasing power—especially for low- and middle-income households. It also increases the domestic currency burden of servicing foreign debt.
Conversely, a strengthening Taka relieves pressure on import expenditures and lowers the local currency cost of foreign debt servicing, though the broader impact will depend on future trends in imports, exports, remittances, foreign exchange reserves, and international market conditions.