Money is a weird thing. One day you’re checking the 1 usd to bdt exchange rate and it’s hovering around 120, and the next, you’re seeing 122 or even 123 at the bank counter. It’s enough to make anyone's head spin, especially if you’re sending money home to Dhaka or trying to budget for a business shipment.
Honestly, the Taka has been on a bit of a rollercoaster lately. As of mid-January 2026, the official interbank rate is sitting near 122.46 BDT per 1 USD. But if you walk into a bank like Eastern Bank or AB Bank, you'll likely see a selling rate closer to 123.50 BDT.
Why the gap? Well, it’s complicated.
Why the 1 usd to bdt exchange rate keeps shifting
Banks don't just pick these numbers out of thin air. Since May 2025, Bangladesh Bank has been trying to move toward a more "market-based" exchange rate. Basically, they're letting supply and demand do the talking, though they still keep a cautious eye on things to prevent total chaos.
Think of it like a see-saw. On one side, you have the US Dollar, which is basically the world's heavyweight champion. On the other, you have the Bangladeshi Taka.
When more dollars flow into the country—through exports like garments or remittances from workers in the Middle East and Europe—the Taka gets a bit stronger. When we have to spend a ton of dollars to buy fuel, machinery, or edible oil from abroad, the Taka starts to sag.
The inflation factor
Inflation in Bangladesh is still a headache. We're looking at a projected consumer price increase of about 8.7% for 2026. When prices at the local kitchen market go up, the value of the Taka in your pocket effectively goes down. If the US has lower inflation than we do, the dollar naturally becomes more "expensive" to buy with our local currency.
What's actually happening at the bank vs. the "Kerb" market
If you’ve ever tried to buy dollars in the "open market" (the kerb market) in areas like Motijheel, you know the price is never what Google says.
- Interbank Rate: This is the "wholesale" price banks use to trade with each other. It’s currently around 122.46.
- Retail/Cash Rate: This is what you pay. Banks often add a margin. For example, some banks are quoting 123.50 BDT for card payments or cash.
- Remittance Rate: If you're a wage earner sending money via SWIFT, you might get a slightly different rate, sometimes with a government incentive added on top.
It’s a bit of a cat-and-mouse game.
Bangladesh is set to graduate from the "Least Developed Country" (LDC) status in November 2026. That’s a huge milestone, but it also means we lose some of the trade favors we used to get. The market is already "pricing in" these changes, which adds more pressure to the 1 usd to bdt exchange rate.
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The role of foreign reserves
Our foreign exchange reserves have seen better days, though they’ve stabilized a bit recently. As of late 2025, gross reserves were around $33.18 billion. While that sounds like a massive pile of cash, it’s what the country uses to pay for every single import. If that pile gets too small, people get nervous, and the Taka loses value.
What you can actually do about it
Look, you can't control what the central bank does, but you can be smart about how you handle your money.
First, stop relying on the first number you see on a search engine. Those are mid-market rates and almost no one actually gets that rate for a personal transaction. Always check the "Selling" or "B.C. Rate" on a local bank's official website if you're buying dollars.
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Second, if you're an expat sending money home, timing is everything. A difference of 1 Taka per dollar might not seem like much on a $100 transfer, but if you’re sending $1,000 every month, that’s 12,000 Taka a year—basically a month’s worth of electricity bills or a very nice dinner out.
Actionable Insights for 2026:
- Use Official Channels: Always use legal banking channels or authorized MFS (Mobile Financial Services) for remittances. Not only is it safer, but the government often provides a 2.5% or higher incentive that makes the "real" rate better than the black market anyway.
- Monitor the "Spread": The gap between buying and selling rates (the spread) is a good indicator of market health. If the spread starts widening beyond 1-2 Taka, it usually means the market expects the Taka to drop further soon.
- Hedge for Business: If you’re a business owner, talk to your bank about forward contracts. These allow you to "lock in" an exchange rate for a future date, so you don't get blindsided by a sudden spike when your letter of credit (LC) matures.
The 1 usd to bdt exchange rate is likely to remain volatile as the global economy deals with high interest rates and shifting trade policies. Keeping a close watch on the Bangladesh Bank’s "Spot Reference Rate" is the best way to stay ahead of the curve.