If you’ve checked the exchange rates lately, you probably noticed something. The USD to BDT conversion isn't what it used to be two years ago. Not even close. Honestly, if you’re sending money home to Dhaka or trying to run an import business in Chittagong, the numbers probably feel a bit like a rollercoaster.
As of mid-January 2026, the interbank rate for one US dollar is hovering around 122.46 Bangladeshi Taka.
That’s a far cry from the days of 85 or 90 Taka. But the "official" number rarely tells the whole story. If you walk into a money changer on the street or look at the "kerb market" (the informal market), you might see different figures entirely. It’s messy. It’s complicated. And if you’re trying to time a transfer, it’s stressful.
What’s Actually Driving the Taka Down?
It’s easy to blame "global inflation" and call it a day, but there’s a lot more under the hood. For a long time, the Bangladesh Bank (BB) kept the Taka artificially pegged to the Dollar. They spent billions of dollars from their reserves to keep the rate stable.
Eventually, the pressure became too much.
In May 2025, the central bank finally let go. They shifted to a flexible, market-based exchange rate system. Basically, they stopped micromanaging every single cent and let the market decide what the Taka is worth. This was a "crawling peg" transition that eventually led to more freedom for the currency.
📖 Related: Flipstik Shark Tank Recap: What Most People Get Wrong About Akeem Shannon’s NASA-Inspired Deal
While this was necessary to stop the "dollar crisis" that was choking importers, it also meant the Taka had to find its real value. Often, that value was lower than people wanted to admit.
The Remittance Surprise
Here is something weird. Despite the currency being weaker, remittances—the money expatriates send back—have been hitting record highs. In the first half of the 2025-26 fiscal year, Bangladesh pulled in over $16 billion. In just the first 11 days of January 2026, the inflow grew by over 80% compared to last year.
Why? Because when the dollar is worth more Taka, people send more money. Your $500 goes a lot further for your family in Sylhet than it did in 2023.
Why the "Official" Rate Isn't What You Get
If you look at Google or a currency converter app, you see one number. If you go to a bank to open a Letter of Credit (LC), you might hear another.
- Interbank Rate: This is what banks charge each other. It’s the "benchmark."
- Remittance Rate: Banks often offer a slightly higher rate to attract dollars from workers abroad.
- Cash/Kerb Market: This is for physical cash. If there’s a shortage of physical dollars in the country, this rate spikes.
Right now, the gap between these rates has narrowed compared to the chaos of 2024, but it hasn't vanished. The central bank is trying to keep things stable by maintaining a high policy rate (around 10%) to curb inflation. They’re basically making it expensive to borrow Taka so people don't use it to buy up Dollars.
The Import Headache
If you're buying a laptop or a car in Bangladesh today, you're paying for this currency shift. Bangladesh imports a massive amount of its fuel, edible oil, and raw materials for the RMG (Ready-Made Garment) sector.
When the dollars to Bangladeshi taka ratio goes from 1:100 to 1:122, every liter of oil becomes 22% more expensive before it even hits the shelf. This is the "pass-through" effect. It’s why your grocery bill feels like a nightmare lately.
The silver lining? Bangladesh’s exports, especially clothing, become "cheaper" and more competitive for American and European buyers. If a T-shirt costs $5, the factory owner now gets more Taka to pay their workers and local bills. But even this is tricky because the raw fabric often has to be imported using—you guessed it—expensive dollars.
📖 Related: Linn County Iowa County Assessor: How Your Property Taxes are Actually Calculated
Key Factors to Watch in 2026
- Foreign Reserves: They’ve stabilized around $20 billion, but they aren't "safe" yet. If reserves drop, the Taka drops.
- US Federal Reserve: If the US keeps interest rates high, the Dollar stays strong against everyone, including the Taka.
- Governance Reforms: The "Interim Government" and the central bank are currently cleaning up "bad loans" in the banking sector. If they succeed, investor confidence returns. If they don't, the Taka stays under pressure.
Making Sense of the Numbers
It’s tempting to wait for the Taka to "gain strength" before sending money, but the reality is that the era of the 80-Taka dollar is gone. Most economists, including those at the IMF, believe a flexible rate is healthier for the long term because it prevents sudden, massive crashes.
If you are a traveler or an expat, the best move is transparency. Use official banking channels or licensed MFS (Mobile Financial Services) like bKash or Nagad. The government currently provides incentives (often around 2.5% or more) for using legal channels, which often makes up for the slightly lower rate compared to the risky "Hundi" or informal markets.
What You Should Do Now
- Don't hoard physical dollars. The spread between buying and selling is often too wide for a casual person to make a profit, and it’s technically regulated.
- Check the mid-market rate. Use reliable sources like the Bangladesh Bank website to see the actual "reference rate" before you commit to a transaction.
- Watch the export data. If Bangladesh's garment exports stay strong, the Taka has a floor. If they dip, expect the dollar to climb further.
The currency situation in Bangladesh is finally moving toward a "new normal." It’s a painful adjustment, but the transparency of a market-based rate is better than the "dollar shortage" that saw ships stuck at port because banks couldn't pay their bills. Stay informed, use official channels, and keep an eye on those monthly remittance reports—they’re the best pulse check for the Taka’s health.