The Bangladeshi taka has strengthened against the US dollar for the first time in five and a half years, according to data from Bangladesh Bank. Stronger remittance inflows, improved foreign exchange liquidity, and rising reserves have reversed a prolonged depreciation trend that began in 2021.
Exchange Rate Movements and Central Bank Data
According to Bangladesh Bank reports, the local currency appreciated by 0.06 percent on a point-to-point basis between June 2025 and June 2026. The taka strengthened further by 0.77 percent between August 30 and September 17, 2026, pushing the dollar exchange rate down from Tk123.95 to Tk123.00. Central bank records show that the dollar rate previously climbed from Tk85.80 in 2021 to a peak of Tk123.95 before reversing course in the second half of 2026.
Bangladesh Bank spokesperson and Executive Director Arif Hossain Khan stated that the shift reflects robust workers’ earnings arriving through formal channels, alongside closer monitoring of foreign exchange transactions. Speaking to state news agency BSS, Khan noted that the central bank is actively tracking import payments and currency trades to ensure that increased dollar supply properly enters the formal banking system while curbing financial irregularities.
Impact on Imports, Inflation, and External Stability
Md Ali Hossain Prodhania, chairman of NRBC Bank, explained that a firmer taka reduces the local-currency cost for essential imports, including fuel, food, industrial raw materials, and machinery.
“It will create a positive image before foreigners and importers,” Prodhania said, adding that lower import expenses help contain inflationary pressures during periods of volatile global commodity prices. He noted that improved foreign liquidity also enables businesses to settle letters of credit without encountering the severe dollar shortages that marked previous years.
Outlook for Reserves and Foreign Investment
Prodhania stressed that maintaining exchange rate stability requires steady growth in remittances and exports, combined with prudent import management and ongoing accumulation of foreign exchange reserves.
Bangladesh Bank has supported these dynamics by purchasing foreign currency from commercial banks during periods of improved market liquidity, helping rebuild foreign exchange buffers to meet external payment obligations.
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