About the Bangladeshi Taka (BDT)
The Bangladeshi Taka is the official currency of Bangladesh, Bangladesh's official currency since 1972, established after Bangladesh's independence from Pakistan following the 1971 Liberation War. Its ISO 4217 code is BDT and it uses the symbol ৳. The BDT is managed by Bangladesh Bank (BB).
The Bangladeshi taka has been relatively stable despite Bangladesh's rapid economic growth. Bangladesh's $460 billion economy (GDP at PPP) is the world's second largest garment exporter after China, ready-made garments (RMG) account for approximately 83% of export earnings and supply major global fashion brands. Bangladesh Bank manages the taka exchange rate to support export competitiveness. Remittances from approximately 12 million Bangladeshis abroad ($22 billion in 2022) provide significant hard currency support.
BDT Key Facts
| Property | Detail |
|---|---|
| Full Name | Bangladeshi Taka |
| ISO 4217 Code | BDT |
| Symbol | ৳ |
| Country / Territory | Bangladesh |
| Continent | Asia |
| Decimal Places | 2 |
| Central Bank | Bangladesh Bank (BB) |
BDT History and Background
The Bangladeshi Taka (BDT) was Bangladesh's official currency since 1972, established after Bangladesh's independence from Pakistan following the 1971 Liberation War. Bangladesh Bank (BB), the institution responsible for monetary policy in Bangladesh, has maintained the BDT's role as legal tender through successive economic cycles, adjusting interest rates and reserve requirements to manage inflation and support growth. The BDT serves as the domestic currency of Bangladesh, with international exchange facilitated through correspondent banking networks, specialist transfer services, and global forex platforms.
Central bank policy decisions are the most direct tool Bangladesh Bank (BB) uses to influence the BDT's exchange rate. Interest rate announcements, inflation reports (particularly consumer price index data), and GDP growth figures from Bangladesh are the primary data releases watched by currency traders. When Bangladesh Bank (BB) raises rates above comparable economies, the BDT tends to attract capital seeking higher yield, and vice versa when rates fall.
BDT Denominations
The Bangladeshi Taka is subdivided into 100 smaller units (2 decimal places). Bangladesh Bank (BB) issues the BDT in a range of note denominations for everyday and large-value transactions, plus coins for smaller amounts.
Physical BDT banknotes and coins serve as legal tender within Bangladesh. For international transactions and cross-border transfers, electronic exchange is available around the clock through forex markets, banks, and specialist services like Wise, OFX, and Revolut.
When traveling to Bangladesh, the best exchange rates are typically obtained by using a no-fee debit card at a local ATM rather than airport currency exchange counters, which often charge premiums of 5–8% above the mid-market reference rate.
Is the BDT Pegged to the Dollar?
The Bangladeshi Taka is a freely floating currency. Its exchange rate is determined by market supply and demand in global foreign exchange markets. Bangladesh Bank (BB) influences the rate indirectly through monetary policy decisions, primarily interest rate settings, rather than by fixing or pegging the rate to another currency. Some central banks do intervene occasionally to limit extreme volatility, but the BDT rate is not administratively set.
BDT Economic Context and Global Role
The BDT is an active regional currency traded across global foreign exchange markets, with exchange rates available around the clock. Liquidity is typically highest during business hours in Bangladesh's primary time zone, and during the London and New York overlap sessions where international activity in the currency is concentrated.
BDT Exchange Rate Factors
Bangladesh Bank (BB) decisions are the single most powerful near-term driver of the BDT exchange rate, but four structural forces shape the currency's value over time.
Monetary Policy. Bangladesh Bank (BB) sets interest rates to manage inflation and support economic growth. When Bangladesh raises interest rates relative to other countries, the BDT tends to strengthen as investors seek higher returns. Rate cuts or expectations of easing typically weaken the currency. Markets price in expected rate changes months in advance, so central bank communication and meeting minutes can move the BDT significantly even before any actual rate change.
Inflation and Purchasing Power. A country with higher inflation than its trading partners sees its real exchange rate erode over time, even if the nominal rate is stable. Bangladesh Bank (BB)'s primary mandate typically includes maintaining price stability, usually targeting annual inflation in the 2–3% range depending on the jurisdiction. When inflation significantly exceeds this target, the currency tends to weaken as the market anticipates either rate hikes or erosion of purchasing power.
Trade and Current Account Balance. Bangladesh's trade with the world creates supply and demand for the BDT. Exporters sell foreign currency to repatriate revenue, supporting the BDT. Importers buy foreign currency to pay overseas suppliers, which weakens it. A structural current account surplus, more exports than imports, generally supports a currency over time, while a deficit puts pressure on it.
Risk Sentiment and Capital Flows. The BDT is sensitive to global risk appetite. When investor confidence falls in emerging or regional markets, capital outflows can weaken the BDT regardless of domestic economic conditions, as investors rotate toward perceived safe-haven assets.
BDT Volatility and Risk Profile
Currency volatility measures how much an exchange rate fluctuates over a given period. Annualized volatility, the standard deviation of daily log returns multiplied by the square root of 252 trading days, is the standard metric used by options traders and risk managers.
Emerging market and smaller economy currencies like the BDT can exhibit higher volatility than G10 pairs, particularly during periods of global risk-off sentiment, capital flow reversals, or country-specific political and economic stress. Investors and travelers alike should account for this volatility when planning significant BDT transactions.
For travelers, short-term volatility means the exchange rate you see today may differ meaningfully from the rate available next week. For businesses with ongoing cross-border transactions, currency risk management tools such as forward contracts or options can hedge against adverse BDT movements.
Sending Money to or from Bangladesh
For international transfers involving BDT, the choice of provider significantly affects the final amount received. The rate shown on LiveRates.io is the mid-market reference rate, the interbank benchmark before any provider markup. Here is a comparison of typical costs:
| Provider Type | Typical Rate Margin | Transfer Fee |
|---|---|---|
| High street bank | 2–4% above mid-market | $10–$40 fixed |
| Airport / hotel exchange | 5–15% above mid-market | Usually none |
| Specialist service (Wise, OFX) | 0.3–1.5% above mid-market | Small fixed or percentage fee |
| Debit card abroad (ATM withdrawal) | 0–2% (network rate) | ATM fee may apply |
For transfers above $1,000, using a specialist service rather than a traditional bank typically saves $20–$80 per transaction. Transfers above $10,000 may qualify for preferential rates through dedicated FX brokers.
Key tip: Compare the total cost including the exchange rate margin and any fixed fees, not just the headline rate. A service advertising zero fees may embed a larger spread in its exchange rate.
Frequently Asked Questions
What is the ISO code for the Bangladeshi Taka?
The ISO 4217 code for the Bangladeshi Taka is BDT. This three-letter code is used by banks, financial institutions, payment systems, and forex platforms worldwide to identify the currency in transactions and data feeds.
Which country uses the Bangladeshi Taka?
The Bangladeshi Taka is the official currency of Bangladesh in Asia. It serves primarily as the domestic currency of Bangladesh.
Who controls the BDT exchange rate?
Bangladesh Bank (BB) manages monetary policy and influences the BDT exchange rate through interest rate decisions and, in some cases, direct market intervention.
What is the BDT symbol?
The official currency symbol for the Bangladeshi Taka is ৳. The ISO 4217 code BDT is used in international financial contexts, forex trading platforms, and cross-border payment systems.
How do I convert BDT to USD?
To convert BDT to U.S. Dollars, use the live converter on LiveRates.io. The exchange rate updates hourly using European Central Bank reference data. You can also view the BDT to USD pair page for a full conversion table, 30-day chart, and historical rate data.
Is the BDT a strong currency?
Currency strength is relative and changes daily based on economic conditions. The best measure is the current exchange rate versus major currencies like USD, EUR, and GBP, which you can find in the rate table at the top of this page. The Bangladeshi Taka reflects Bangladesh's economic fundamentals including its domestic economic conditions, including trade balances, inflation, and central bank policy.
What is the BDT to USD exchange rate today?
The current BDT to USD exchange rate is available at the top of this page and is updated hourly. You can view the full BDT/USD pair page for a live rate, 30-day chart, volatility statistics, and conversion table.
What is the BDT to EUR exchange rate today?
The current BDT to EUR exchange rate is available on the BDT/EUR pair page. Rates are sourced from the European Central Bank and updated every hour.
How has the BDT performed this year?
Year-to-date performance data for the BDT against major currencies is available on the historical rate pages. Navigate to a specific pair page (such as BDT/USD) and click the historical rates section to view annual highs, lows, and year-over-year changes.
Is the BDT accepted outside of Bangladesh?
The Bangladeshi Taka is primarily accepted within Bangladesh. For international travel, it is generally advisable to convert BDT to USD, EUR, or the local currency of your destination before arriving, as acceptance outside Bangladesh may be limited.
