Taka Among Region’s Most Stable Currencies, Says Bangladesh Bank Report

Online Desk : The Bangladeshi taka remained one of the most stable currencies among South Asian and neighbouring economies over the past year, depreciating by only 0.59 percent against the US dollar between March 2025 and March 2026, according to the latest quarterly report of Bangladesh Bank.

The central bank’s data showed that Cambodia recorded the smallest depreciation during the period, with its currency weakening by 0.44 percent against the US dollar.

Among the countries compared, the Indian rupee registered the steepest decline, losing 8.94 percent of its value against the greenback. The Sri Lankan rupee depreciated by 5.11 percent, followed by the Philippine peso at 3.70 percent and the Indonesian rupiah at 2.67 percent.

In contrast, the Chinese yuan appreciated by 5.14 percent, making it the strongest-performing currency in the comparison, while the Pakistani rupee also strengthened modestly, gaining 0.39 percent against the US dollar.

Bangladesh Bank officials attributed the taka’s limited depreciation to the adoption of a more market-based exchange rate system and tighter monetary and foreign exchange management aimed at reducing volatility in the currency market.

Bangladesh introduced the market-based exchange rate regime in May last year as part of the conditions attached to its International Monetary Fund (IMF) programme.

Officials also said the central bank had strengthened the country’s foreign exchange position through higher remittance inflows and improved export earnings, easing pressure on the local currency.

According to Bangladesh Bank officials, remittance inflows continued to grow after the fall of the Awami League-led government in August 2024, enabling the central bank to rebuild its foreign exchange reserves.

Bangladesh Bank data show that foreign exchange reserves, calculated under the IMF’s BPM6 methodology, stood at $31.60 billion as of July 30, up from $24.86 billion during the corresponding period a year earlier.

Over the past year, the US dollar traded within a relatively narrow range of Tk 122 to Tk 123, reflecting the taka’s overall stability.

Industry insiders said a stable exchange rate helps contain imported inflation by lowering the cost of essential imports, including fuel, food and industrial raw materials.

However, they noted that demand for foreign currency to settle import payments has recently pushed the US dollar slightly higher against the taka.

According to Bangladesh Bank data, the interbank exchange rate stood at Tk 123.81 per US dollar on August 4, compared with Tk 123.69 a few days earlier.