In a welcome turn for Bangladesh’s economy, the Taka is gaining ground against the US dollar, fuelled by a surge in remittances and exports.

This shift, observed in April 2025, signals a potential turning point for the nation’s financial stability, with experts predicting a continued decline in the dollar’s value in the coming weeks.

The numbers tell a compelling story. On Thursday, banks exchanged remittances at rates between Tk 122.50 and Tk 122.60 per dollar—a notable drop from the Tk 123 to Tk 123.20 range seen just two weeks prior in early April.

This decrease of Tk 0.50 to Tk 0.70 reflects a strengthening Taka, driven by reduced pressure on import payments. Bankers are optimistic, forecasting a further decline in the dollar’s value as market dynamics shift in Bangladesh’s favour.

The Bangladesh Bank has confirmed a stable dollar supply, with spokesperson Arif Hossain Khan noting that the central bank is resisting immediate full market flotation of the dollar’s price despite pressures from international donor agencies. This cautious approach aims to maintain economic stability while the Taka gains ground.

The Taka’s resurgence is no accident. A significant boost in remittances – highlighted by a record $3.29 billion inflow in March and $2.27 billion in the first 26 days of April – has flooded the market with foreign currency, easing the demand for dollars. Coupled with steady export growth, this influx has reduced the strain on paying import bills, a persistent challenge for Bangladesh’s economy.

Bank officials point to another factor: the upcoming elections. With many investors adopting a wait-and-see approach, new investment-related imports are unlikely to spike in the next few months. “There’s little likelihood of increased dollar demand soon,” a senior banker explained. This temporary lull in import activity has given the Taka breathing room to strengthen.