Bangladeshi taka

The taka (Bengali: টাকা, IPA: , sign: ৳, code: BDT, short form: Tk) is the currency of Bangladesh. It is divided into 100 poysha, but poysha coins are no longer used every day. People mainly use banknotes and coins of taka. The most common symbols for the taka are "৳" and "Tk", which you’ll often see on receipts when buying things.

The issuance of larger banknotes, like ৳10 and above, is managed by the Bangladesh Bank, the country’s central bank. Smaller government notes of Tk. 2 and Tk. 5 are overseen by the ministry of finance. Over time, many of these smaller notes have been replaced by coins, and due to rising prices, lower denomination coins have almost disappeared from everyday use.

On 8 May 2024, the Bangladesh Bank changed how the taka is valued compared to the US dollar. They placed the taka on a crawling peg system, setting the rate at 117 takas for every US dollar. This helps control how much goods and services cost in Bangladesh and affects trade with other countries.

Etymology

Main article: History of the taka § Etymology

The word "taka" comes from an old word called "ṭaṅka," which means a silver coin. This word has roots in many languages and cultures. In Bangladesh and parts of India, people use "taka" to talk about money in general. This word is also used in some other Indian states and languages.

History

Further information: History of the taka

After the Partition of Bengal in 1947, East Bengal became part of Pakistan and was called East Pakistan. The Pakistani rupee was used there, and it had the word taka on its notes and coins. The Bangladeshi taka started in 1972, after Bangladesh became independent.

Before 1971, people in Bangladesh used banknotes from the State Bank of Pakistan. Even after Bangladesh became independent, these banknotes were used for about three months. Then the taka was officially introduced on March 4, 1972. During the war, some people marked banknotes to show support for Bangladesh.

On March 4, 1972, the taka replaced the Pakistani rupee. The first notes were for ৳1 and ৳5, ৳10, and ৳100. Over time, more notes were added, like ৳50 in 1977, ৳500 in 1979, and ৳20 in 1982. In 2008, ৳1000 notes were introduced.

In 2011, new notes were issued for ৳2, ৳5, ৳100, ৳500, and ৳1000, featuring Bangabandhu Sheikh Mujibur Rahman. New ৳10, ৳20, and ৳50 notes came in 2012, showing different monuments and art. In 2019, new ৳100 and ৳50 notes were released with better security and different colors. In 2020, ৳200 notes were introduced, showing a village scene.

Special notes were also made to remember important events, like the 40th Victory Anniversary of Bangladesh in 2011 with a ৳40 note. Other special notes included a ৳60 note in 2012 for 60 years of the National Movement, a ৳25 note in 2013 for the Security Printing Corporation's 25th anniversary, and a ৳100 note in 2013 for the Bangladesh National Museum's 100th anniversary.

Coins

In 1973, Bangladesh began using coins of different values: 5, 10, 25, and 50 poysha. The next year, 1 poysha coins were added, and in 1975, ৳1 coins joined them. These coins were made from materials like aluminium, steel, and copper-nickel. Some coins had special shapes, like square with rounded corners or scalloped edges. Over time, smaller coins like the 1, 5, and 10 poysha became rare. Today, you might still find ৳1, ৳2, and ৳5 coins in use, though new coins aren’t made every year. The latest coins, ৳2 and ৳5, were released in 2013, and the ৳1 coin in 2014.

Banknotes

Main article: Banknotes of the Bangladeshi taka

The Bangladeshi taka has had eleven different sets of banknotes since 1972. These notes often show important places, like mosques, and pictures of everyday life in the country, such as farms, animals, and villages. Many notes also feature Bangabandhu Sheikh Mujibur Rahman, the first president of Bangladesh, especially those made when the Awami League was in charge.

After the Awami League lost power in the July Revolution in 2024, plans were made to change the design of the banknotes by 2025. A special group picked by the Ministry of Finance will suggest new designs. The new notes will no longer show Sheikh Mujib’s portrait but will include images remembering the July Revolution.

Exchange rates

Current exchange rates

Historic exchange rates

When Bangladesh became independent, the value of the Bangladeshi taka was set between ৳7.5 and ৳8.0 for every US$1. From 1971 until 1987, the taka's value went down each year compared to the US dollar, except in 1978. To help with this, Bangladesh used help from the International Monetary Fund starting in 1974. By 1975, the government changed its mind and devalued the taka by 56 percent, agreeing to work with the World Bank.

Between 1980 and 1983, the taka lost about half its value because of problems with Bangladesh's money and trade. From 1985 to 1987, small changes were made to the taka's value, stabilizing it to about 12 percent less against the US dollar. In mid-1987, the official rate was close to ৳31 for every US$1. By January 2011, US$1 was about ৳72, and by April 2012, it was close to ৳82. As of September 2015, US$1 was worth about ৳77.