Introduction to the currency of Bangladesh
Bangladesh is a country in South Asia with a population of over 160 million. Its official currency is the Bangladeshi taka (BDT), which is abbreviated as Tk. The taka is issued by the Bangladesh Bank, the country’s central bank, and is used as a medium of exchange in everyday transactions.
History of Bangladeshi currency
Before gaining independence from Pakistan in 1971, Bangladesh was part of the Indian subcontinent and used the Indian rupee as its currency. After independence, the taka was introduced as the official currency. Initially, the taka was pegged to the US dollar, but due to fluctuations in the global currency market, it is now a floating currency exchange rate system.
The Bangladeshi taka explained
The taka is divided into 100 paisa and is available in denominations of 1, 2, 5, and 10 taka coins as well as 2, 5, 10, 20, 50, 100, 500, and 1000 taka banknotes. The taka is also available in polymer notes, which are more durable than paper notes. The taka can be easily converted into US dollars, Euros, and other major currencies.
Banknotes and coins in circulation
The most commonly used banknotes in Bangladesh are the 10, 20, 50, 100, and 500 taka notes. Coins are less commonly used, but the 1 and 5 taka coins are still in circulation. All banknotes and coins feature images of famous landmarks, historical figures, and notable events in Bangladeshi history.
Exchange rates and conversions
The exchange rate of the taka varies depending on global currency market fluctuations. As of August 2021, 1 US dollar is equivalent to approximately 85 taka, 1 Euro is equivalent to approximately 101 taka, and 1 British pound sterling is equivalent to approximately 118 taka.
Where to exchange currency in Bangladesh
Currency exchange services are widely available in Bangladesh. Banks, hotels, and airports offer currency exchange services, and there are also many independent money changers throughout the country. It is advisable to compare exchange rates before converting currency to ensure that you get a fair deal.
Credit and debit card usage in Bangladesh
Credit and debit cards are accepted in many shops, restaurants, and other establishments in major cities such as Dhaka and Chittagong. However, it is advisable to carry cash as smaller shops and businesses may not accept cards.
Using ATMs in Bangladesh
ATMs are widely available throughout Bangladesh, especially in major cities. Most ATMs accept international credit and debit cards, but it is advisable to check with your bank before traveling to ensure that your card will work in Bangladesh.
Foreign currency restrictions and regulations
There are no restrictions on the amount of foreign currency that can be brought into Bangladesh, but amounts exceeding $5,000 or equivalent must be declared upon entry. Foreign currency can be exchanged at authorized banks and money exchange counters.
Tips for handling currency in Bangladesh
It is advisable to carry small denominations of cash for everyday transactions, as larger notes may not be accepted in smaller shops and businesses. It is also advisable to be cautious when exchanging currency and to only use authorized exchange services.
Future developments in Bangladeshi currency
The Bangladesh Bank has announced plans to issue new banknotes with improved security features to combat counterfeiting. The bank has also introduced a new 5 taka polymer coin to replace the paper notes that are currently in circulation.
Conclusion: The importance of knowing the currency in Bangladesh
It is important to be familiar with the currency in Bangladesh when traveling or doing business in the country. Understanding the taka, its denominations, and exchange rates can help ensure that you get a fair deal when exchanging currency and avoid any potential scams. By following these tips and guidelines, you can make the most of your time in Bangladesh and enjoy a hassle-free experience with the local currency.
