While the majority of South Asian and regional currencies faced severe depreciation pressures against the US dollar over the past year, the Bangladeshi Taka (BDT) exhibited notable stability.
Between March 2025 and March 2026, the Taka depreciated by a modest 0.59% against the greenback—substantially outperforming major regional peers, including the Indian Rupee.
According to Bangladesh Bank’s latest quarterly economic report, the Taka’s resilience is anchored in the successful transition to a crawl-managed market-based exchange rate framework, vigilant foreign exchange market supervision, sustained remittance inflows, robust apparel export receipts, and significant central bank reserve rebuilding.
The Bangladeshi Taka recorded just a 0.59% depreciation from March 2025 to March 2026, standing out against regional currencies like the Indian Rupee, which plunged by 8.94%.
Bangladesh Bank’s gross foreign exchange reserves (BPM6) climbed to $31.60 billion as of July 30, 2026—a $6.74 billion surge from $24.86 billion recorded in July 2025.
Over the same 12-month period, the Sri Lankan Rupee depreciated by 5.11%, the Philippine Peso by 3.70%, and the Indonesian Rupiah by 2.67%.
Only the Cambodian Riel outperformed the Taka with a minor 0.44% decline, while the Chinese Yuan appreciated by 5.14% and the Pakistani Rupee strengthened slightly by 0.39%.
Emerging import settlement demand drove interbank dollar rates to Tk123.81 as of August 4, 2026, up slightly from Tk 123.69 in late July.
12-Month Regional FX Depreciation Matrix (% Change vs. USD)
Chinese Yuan (CNY) ██████ +5.14% (Appreciation)
Pakistani Rupee (PKR) █ +0.39% (Appreciation)
Cambodian Riel (KHR) ░ -0.44%
Bangladeshi Taka (BDT) █ -0.59% <-- (South Asian Stability Anchor)
Indonesian Rupiah (IDR) ███ -2.67%
Philippine Peso (PHP) ████ -3.70%
Sri Lankan Rupee (LKR) ██████ -5.11%
Indian Rupee (INR) ██████████ -8.94%
Currency | 12-Month FX Movement (vs. USD) | Primary Underlying Drivers |
Chinese Yuan (CNY) | +5.14% (Appreciated) | Strong trade surplus & central bank intervention |
Pakistani Rupee (PKR) | +0.39% (Appreciated) | IMF program stabilization & strict import curbs |
Cambodian Riel (KHR) | -0.44% | Highly dollarized economy & stable tourism/RMG receipts |
Bangladeshi Taka (BDT) | -0.59% | Remittance surge, RMG export recovery, BPM6 reserve buildup |
Indonesian Rupiah (IDR) | -2.67% | Commodity price volatility & portfolio capital outflows |
Philippine Peso (PHP) | -3.70% | Widening trade deficit & elevated import demand |
Sri Lankan Rupee (LKR) | -5.11% | Debt restructuring adjustments & external debt service |
Indian Rupee (INR) | -8.94% | Portfolio capital flight & elevated import payments |
Structural anchors
The primary driver behind the Taka's relative stability was the central bank's policy decision to adopt a market-reflective exchange rate mechanism.
Following initial adjustments, central bank oversight stabilized liquidity, aligning market demand with supply and curtailing kerb-market speculation.
Simultaneously, record remittance inflows through official banking channels and steady apparel export earnings expanded gross foreign currency reserves to $31.60 billion.
This expanded buffer gives Bangladesh Bank the necessary maneuverability to manage short-term liquidity shocks without resorting to abrupt, large-scale currency devaluations.
Exchange rate predictability offers key benefits across the broader real economy:
- A stable Taka mitigates cost-push inflation on imported essentials, including crude oil, LNG, food grains, fertilizer, and industrial raw materials.
- Foreign exchange stability allows manufacturers and importers to forecast production budgets and hedge import liabilities without sudden currency losses.
- Sovereign and private sector dollar-denominated debt repayments remain predictable, avoiding fiscal slippage caused by currency devaluation.
"A predictable and stable exchange rate sends a strong, reassuring signal to export-oriented sectors, particularly Readymade Garments," noted Mohiuddin Rubel, founder & CEO of Bangladesh Apparel Voice and former BGMEA director.
"Over recent years, sharp currency volatility introduced immense uncertainty into production costing, order pricing, and long-term buyer contracts. The current stability provides exporters with the operational predictability needed to plan capital investments and negotiate forward orders with confidence."
"While exchange rate stability is a welcome anchor, FX rates alone cannot guarantee global market share," Rubel cautioned.
"Global competition is fiercer than ever. To fully capitalize on currency stability, we must address underlying operational friction—specifically industrial gas and electricity shortages, port clearance delays, and supply chain inefficiencies. Stability must be backed by structural productivity gains, product diversification into high-value synthetic textiles, and market-driven policies rather than artificial market intervention."
Long-term FX stability
To maintain currency stability against rising import demand and global macroeconomic uncertainty, economic analysts recommend four priorities:
- Export Market & Product Diversification: Expanding beyond traditional cotton apparel into man-made fibers (MMF), technical textiles, leather goods, and pharmaceutical exports.
- Remittance Channel Incentives: Maintaining formal banking channel incentives to encourage migrant workers to utilize official remittance networks.
- Active Reserve Management: Utilizing the expanded $31.60 billion reserve buffer strategically to smooth out seasonal import payment spikes without capping market rates.
- FDI & Capital Account Streamlining: Improving domestic ease-of-doing-business indicators to attract net foreign direct investment (FDI) and long-term equity capital.
