The currency of Bangladesh is the Bangladeshi taka, normally symbolized by ৳ or Tk. Just as the US dollar is usually written as USD, the Bangladesh taka’s code is BDT. The currency is controlled by the country’s central bank, known as the Bangladesh Bank. Its operations are monitored by the Ministry of Finance. Other states that call their currency “taka” are India's West Bengal and Tripura.
History of the Taka
The Bangladeshi taka was officially introduced on March 4, 1972. It became the legal tender after the Pakistani government withdrew the status of its 100 and 500 rupee banknotes as legal tender. This was done to prevent the high-denomination notes from negatively affecting the Pakistani economy. However, these denominations were also in circulation in Bangladesh. The first ৳1, ৳5, ৳10 and ৳100 were introduced in 1972, while ৳50, ৳500, ৳20, and ৳2 were introduced in 1975, 1977, 1980, and 1989, respectively.
Bank Notes and Issues
Bangladeshi taka banknotes normally occur in denominations of ৳2, ৳5, ৳10, ৳20, ৳50, ৳100, ৳500, and ৳1000. However, the ৳1, ৳25, ৳40, and ৳60 notes are rarely used by Bengalis. The Security Printing Corporation Bangladesh Ltd. is responsible for printing taka banknotes.
The first commemorative banknote ever minted in Bangladesh was the ৳40 introduced in 2011. It was minted to commemorate the “40th Victory Anniversary of Bangladesh.” The note features Bangabandhu Sheikh Mujibur Rahman, who was the Father of the Nation. It also has portraits of six armed men and the National Martyr’s Monument in Savar. The second note ৳60 was introduced on February 15, 2012, to celebrate Bangladesh’s “60 years of National Movement.” Then the ৳25 note was first minted on January 26, 2013, to commemorate the silver jubilee of the Security Printing Corporation. The latest commemorative currency was the ৳100, introduced to celebrate the 100th anniversary of the Bangladesh National Museum.
The Bangladeshi taka is subdivided into 100 poisha. In 1973, coins in 5, 10, 25, and 50 poisha denominations were introduced into the Bangladeshi economy. The 1 poisha coin was introduced in 1974, while the ৳1 coin was minted in 1975. The coins were struck in either aluminum (1,5, and 10 poisha), steel (25 and 50 poisha) or copper-nickel (৳1 coin). Currently, the poisha is seldom used, and only the ৳1, ৳2, and ৳5 coins are regularly circulated.
Historical Taka Versus US Dollar Exchange Rates
At the time of independence in 1971, the value of Bangladeshi taka against the US dollar was set at ৳7.5-৳8.0. However, with the exception of 1978, the value of the taka decreased each year between 1971 and 1987. However, in 1974 Bangladesh began to use of IMF’s compensatory financing facility as a means of addressing these decreases in value. In 1975, the taka was devalued by 56% and the Bangladesh Aid Group was established as part of IMF’s monetary and fiscal policy. Since then, the currency has regained its value. In fact, in year 2012, US$1 was exchanged for ৳72, and in 2015 the value rose to ৳77 for every one US dollar. Therefore, the value of the taka is now ten times its value at independence and is currently more stable than it was in the 1970s and 1980s.
About the Author
Sharon is a Kenyan native with a wide range of interests. An accountant and financial analyst by profession, Sharon enjoys writing about world facts, the environment, society, politics, and more.
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