If you’ve been tracking the value of 1 USD to taka lately, you know it's been a wild ride. Honestly, for the last couple of years, checking the exchange rate felt like watching a high-stakes thriller where the hero just keeps falling off cliffs. But as we move through January 2026, things are looking... different. Not "everything is fixed" different, but definitely more stable than the chaos of 2024.
Right now, the interbank rate is hovering around 122.46 BDT. Some banks might quote you 122.30, others might nudge toward 122.55. It's a far cry from the days when the Taka was shedding 9% or 10% of its value in a single calendar year.
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The Taka is Finding Its Floor
For a long time, the Bangladesh Bank tried to keep the dollar artificially cheap. It didn't work. By mid-2024, the gap between the official rate and the "curb market" (the street rate) was so huge it was basically a joke. People were siphoning money out, and exporters were holding onto their dollars because they didn't want to get shortchanged by the government’s low-ball rates.
Then came the "crawling peg" and eventually a more market-based system. Fast forward to 2026, and the Taka is actually considered "undervalued" by some measures. A recent central bank study suggested that based on the Real Effective Exchange Rate (REER), the equilibrium should be around 121.55 BDT.
When a currency is undervalued, it’s actually a bit of a relief for the economy. It means the pressure to devalue even further has mostly evaporated. We’re seeing a shift from "panic mode" to "management mode."
What’s actually holding the rate steady?
It isn't just one thing. It's a mix of boring policy stuff and some pretty massive human stories.
- Remittance is booming. In the first half of the current fiscal year, Bangladesh saw a record $17.17 billion sent home by expatriates. That's a massive influx of dollars that keeps the Taka from collapsing.
- The "Hundi" crackdown. The interim government and the central bank, led by Governor Ahsan H. Mansur, have been much more aggressive about forcing transactions into legal channels.
- Import demand is down. This is the "bad news" that helps the exchange rate. Because the economy has been sluggish and interest rates are high, businesses aren't buying as much machinery or raw materials from abroad. Less buying means less demand for dollars.
- IMF support. The steady tranches of the IMF loan have acted like a safety net, giving international investors a reason not to jump ship.
1 USD to Taka: The "Street Rate" vs. The Bank
You’ve probably noticed that what you see on Google isn't always what you get at the counter in Motijheel or a booth at the airport. In the past, the difference was massive—sometimes 5 or 6 Taka per dollar.
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Today, that gap has narrowed significantly. Most commercial banks are exchanging at rates very close to the interbank average. For example, earlier this month, the central bank was even buying dollars back from commercial banks at around 121.50 BDT to prevent the Taka from getting too strong too quickly. They want to protect exporters, after all. If the Taka gets too strong, Bangladeshi garments become more expensive for buyers in the US and Europe.
Real-world impact on your wallet
If you’re sending $1,000 home today, you’re looking at roughly 122,460 BDT.
Compare that to early 2021, when that same thousand bucks only got you about 84,000 BDT. While the Taka's "weakness" is great for families receiving money from abroad, it’s been a nightmare for inflation. Everything from soybean oil to fuel is priced in dollars.
Basically, the stability we’re seeing now is the first step toward lowering the cost of living. If the exchange rate stays flat for six months, businesses can finally predict their costs and stop hiking prices "just in case" the dollar jumps again.
Why the 2026 Outlook is Better Than 2024
The year 2024 was defined by a 9% depreciation. It was brutal.
In contrast, throughout 2025, the Taka only depreciated by about 0.27%. That is almost a straight line on a graph. Central bankers are crediting a "tighter monetary policy," which is a fancy way of saying they made it harder to borrow money, which slowed down the whole system enough to let the currency catch its breath.
There are still risks. Dr. Zahid Hussain, a former lead economist at the World Bank, has pointed out that this stability is currently being tested. If the government decides to suddenly ramp up infrastructure spending or if global oil prices spike, the demand for dollars will come roaring back.
Also, we can't ignore the banking sector's internal mess. With non-performing loans sitting at nearly $28 billion at the end of 2024, the financial system is still fragile. But for the average person asking about 1 USD to taka, the "panic" phase seems to be in the rearview mirror.
Actionable Tips for Currency Exchange
If you need to move money right now, don't just walk into the first bank you see.
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- Check the Mid-Market Rate: Use a reliable tracker to know the "true" price before you talk to a dealer.
- Compare Private Banks: Often, private commercial banks offer slightly better rates for remitters than state-owned banks because they are hungrier for foreign currency.
- Legal Channels Only: With the 2.5% incentive for remittances still a major factor, using legal channels like bank transfers or apps is almost always better than the "black market" anyway, plus it's safer.
- Watch the REER: If the Real Effective Exchange Rate stays near 100, the Taka is "fairly valued." If it climbs way above 100, expect a devaluation soon. Right now, it's hovering in a healthy zone.
The bottom line? The Taka isn't going back to 85 per dollar. Those days are gone. But the era of waking up to find your savings worth 5% less than they were yesterday appears to be over for now. Stability is the new goal, and so far in 2026, the Taka is holding the line.
To get the most out of your exchange, monitor the daily auction rates published by the Bangladesh Bank, as these now lead the market rather than trailing behind it. If you are an exporter or a freelancer, consider hedging your earnings by converting only what you need, as the central bank is currently active in buying up excess dollars to keep the rate from dipping too low.