Money flows between the United States and Bangladesh regularly, for a variety of reasons. In 2016, around U.S. $452 million was sent from the United States to Bangladesh as remittances, and around U.S. $93 million made its way in the opposite direction. In 2017, bilateral trade of goods between both countries accounted for more than U.S. $7.16 billion.
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The U.S. dollar was adopted as the United States’ official currency in 1792. Outside of the U.S., its use as an official currency is also found in Zimbabwe, two British Overseas Territories, the British Virgin Islands, the Caribbean, as well as Turks and Caicos Islands. Some of the places where it is used unofficially include Panama, Haiti, Costa Rica, Belize, Nepal, Cambodia, and Myanmar.
In April 2016, the share of the U.S. dollar in the international foreign exchange market turnover was in excess of 87%. It is the world’s most heavily traded currency and also takes the number one spot when it comes to global reserve currencies. Estimates suggest that over U.S. $5 trillion is traded in the forex market each day.
|Nicknames||Buck, moolah, paper, dough, dead presidents, |
bones, greenback, green
|Bank notes||$1, $2, $5, $10, $20, $50, $100|
|Coins||1c, 5c, 10c, 25c, 50c, $1|
Bangladesh introduced the Bangladeshi taka as its official currency in 1972, one year after the country gained independence from Pakistan. The word “taka” comes from the Old Turkic word “tamga”, which literally translates to stamp or seal. Records show that the word taka was used to refer to gold and silver coins in the region as far back as the 14th century.
It is common for Bangladeshis to refer to all forms or money as taka, the currency in question notwithstanding. The use of the word to refer to money in general is also prevalent in some Indian states such as West Bengal and Tripura.
|Bank notes||BDT 1, BDT 2, BDT 5, BDT 10, BDT 20, BDT 50, |
BDT 100, BDT 500, BDT 1,000
|Coins||50p, BDT 1, BDT 2, BDT 5|
U.S. Dollar / Bangladeshi Taka Historical Rates
Upon its introduction in 1972, the exchange rate of the Bangladeshi taka was set at U.S. $1 = ৳7.5 to ৳8. The relative value of the Bangladeshi taka against the U.S. dollar dropped each year from then until 1981, except in 1978.
In 1974, Bangladesh tried to get the taka’s exchange rate to stabilize by using the International Monetary Fund’s compensatory financing facility. However, this did not have the desired effect and Bangladesh devalued the taka by more than 55% in the following year. The taka depreciated further from 1980 to 1983, by over 50%.
The value of the taka against the U.S. dollar achieved some stability around mid 1987, when it was trading at less than ৳31 against the U.S. dollar. However, it breached the ৳40 mark against the U.S. dollar by mid 1990s. By late 1999, it traded at over ৳50 against the U.S. dollar for the first time.
The value of the taka against the U.S. dollar has continued to fall since then, although there have been periods of intermittent relief. It breached the ৳60 mark against the U.S. dollar in early 2005, and the ৳70 mark in early 2006. From then, until late 2010, the taka’s value against the U.S. dollar remained largely stable, trading at around the ৳70 mark.
Another drop in the taka’s value followed, and it traded over ৳84.5 against the U.S. dollar in January 2012. It then experienced some respite, and by mid 2013, it traded at below ৳78 against the U.S. dollar. After being relatively stable until late 2016, its value against the U.S. dollar started to drop gradually again. In September 2018, it was trading at around ৳84 against the U.S. dollar.
USD/BDT in the last five years
|U.S. $1 =|
|1 July, 2013||BDT 77.950|
|1 July, 2014||BDT 77.570|
|1 July, 2015||BDT 77.875|
|1 July, 2016||BDT 78.445|
|1 July, 2017||BDT 81.325|
USD/BDT in the last five months
|U.S. $1 =|
|1 April, 2018||BDT 84.600|
|1 May, 2018||BDT 84.500|
|1 June, 2018||BDT 83.735|
|1 July, 2018||BDT 84.500|
|1 August 2018||BDT 83.795|
What Affects USD/BDT Rates?
While Bangladesh Bank, the central bank of Bangladesh, avoids intervening in the forex market directly, its interventions come in the form of buying and selling foreign currency with the aim of keeping the exchange rate of the taka in check. For instance, Bangladesh injected more than U.S. $335 million in the inter-bank foreign market in 2006.
Other factors that may have a bearing on how the USD/BDT currency pair performs include interest rates, monetary policies, gross domestic products (GDPs), trade balances, and economic growth of both countries.
Sending money from the United States to Bangladesh or from Bangladesh to the U.S. requires that you pay close attention to the existing USD/BDT exchange rate. Other factors you need to consider include fees as well as payment and transfer methods.