Taka strengthens against US dollar amid rising reserves and remittances

The Bangladeshi Taka has strengthened against the US dollar, reversing a five-and-a-half-year trend of continuous depreciation. Between August 30 and September 17, 2026, the Taka appreciated by 0.77 percent, with the exchange rate dropping from 123.95 to 123.00 Taka per dollar.

This recovery is driven by significant increases in remittance inflows and rising foreign exchange reserves. Data indicates that from July 1 to September 19, remittances reached $7.702 billion, a 13.8 percent increase compared to the previous year. Additionally, foreign exchange reserves rose to $36.44 billion as of September 8, up from $24.86 billion in September 2024.

To further support the economy, Bangladesh Bank has introduced a new framework allowing foreign banks to settle eligible trade payments in Taka. This system enables local banks to maintain Taka accounts for foreign correspondent banks without requiring initial funding in convertible currencies. Instead, accounts can be funded through Taka payments received from Bangladeshi importers, which can then be used to pay local exporters. This mechanism is expected to reduce the demand for foreign currency and lower import costs for essential goods such as fuel, food, and industrial raw materials.