What Currency Is Used in Bangladesh?

Bangladesh, a South Asian nation, utilizes its own specific currency for all domestic and most international dealings. This currency serves as the foundation of its economic activities and daily transactions.

The Currency of Bangladesh

The official currency of Bangladesh is the Bangladeshi Taka. Its international currency code is BDT, and it is commonly identified by the symbol ৳ or sometimes “Tk” in local contexts. The Taka was introduced on March 4, 1972, after the country’s independence, replacing the Pakistani Rupee. Its name derives from the Sanskrit word “tanka,” historically referring to a silver coin.

The Bangladeshi Taka circulates in various denominations of banknotes and coins. Banknotes are available in values of 2, 5, 10, 20, 50, 100, 200, 500, and 1,000 Taka. Coins are issued in denominations of 1, 2, 5, and 10 Taka, along with smaller poisha denominations, though poisha coins are rarely seen due to inflation. The Bangladesh Bank, the nation’s central bank, issues most banknotes, while the Ministry of Finance issues the 2 and 5 Taka notes.

Practical Aspects of Using the Currency

When conducting transactions in Bangladesh, cash remains the predominant method of payment, particularly outside major urban centers. It is advisable to carry a supply of smaller Taka denominations for minor purchases, local transportation, and markets.

While major hotels, larger shops, and restaurants in cities like Dhaka generally accept card payments from Visa, Mastercard, and American Express, reliance on cards can be limited in more rural areas. Digital payment methods are also gaining widespread use, with mobile banking services such as bKash, Nagad, and Rocket being highly popular for various transactions, including online shopping and utility payments.

Automated Teller Machines (ATMs) are readily available in major cities and tourist hubs, commonly accepting international Visa, Mastercard, and some American Express cards. Some ATMs may charge a small fee, typically 35 to 40 Taka per transaction. Always select the option to be charged in local currency (BDT) to avoid unfavorable exchange rates from Dynamic Currency Conversion. Withdrawal limits are typically around 20,000 Taka per transaction, though multiple withdrawals are often possible.

Exchanging Currency

Foreign currency can be converted into Bangladeshi Taka at several locations. International airports in Bangladesh offer currency exchange kiosks upon arrival, which are convenient for obtaining an initial amount of local currency. However, for more competitive exchange rates, it is recommended to exchange currency at authorized money changers or banks located within cities.

US Dollars, British Pounds, and Euros are among the most commonly accepted foreign currencies for exchange. Exchange rates fluctuate based on market supply and demand, so it is prudent to check current rates from reliable sources, such as the Bangladesh Bank website or reputable online currency converters, before making a transaction.

It is advisable to avoid unofficial exchange channels and be cautious of less favorable rates often found at hotels or airport kiosks for larger sums. For amounts exceeding US$5,000, foreign currency must be declared upon entry into Bangladesh.