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The Taka has regained ground against the US dollar after five and a half years of continuous depreciation, marking a notable improvement in Bangladesh's foreign exchange market as stronger remittance inflows, improved dollar liquidity and rising foreign exchange reserves ease pressure on the local currency.

According to the latest Bangladesh Bank report, the Taka appreciated by 0.06 percent against the US dollar on a point-to-point basis between June 2025 and June 2026.

The local currency strengthened further by 0.77 percent between August 30 and September 17, 2026, as the dollar rate declined from Tk123.95 to Tk123.00. 

Bangladesh Bank data show that the dollar rate increased from Tk85.80 in 2021 to Tk123.95, before the trend began to reverse in the second half of the current year. 

Chairman of NRBC Bank Md Ali Hossain Prodhania said the strengthening of the Taka, together with rising remittances and higher foreign exchange reserves, would contribute to greater stability in the country's external sector.

He said stronger remittance inflows are increasing the supply of foreign currency in the formal banking channel, while the accumulation of reserves is strengthening the country's capacity to meet import and other external payment obligations.

"It will create a positive image before foreigners and importers," he said, adding that a more stable exchange rate would also help improve confidence among foreign investors and businesses engaged in international trade.

He said a stronger Taka would help reduce the local-currency cost of imports, particularly fuel, food, industrial raw materials, machinery and other imported inputs. 

This could help businesses manage their import bills and reduce cost pressures in the domestic market, he added.

According to him, lower import costs could also help contain inflationary pressure, particularly when global commodity prices remain volatile, as importers would require comparatively fewer Taka to settle dollar-denominated payments.

He also said improved foreign exchange availability would make it easier for importers to open and settle legitimate letters of credit and meet their external payment obligations without facing the kind of dollar shortages seen during the earlier period of foreign exchange pressure.

Prodhania said the continued growth of remittances is particularly important because it provides a steady source of foreign currency and supports the country's balance of payments.

He, however, stressed that the improvement in the exchange rate should be supported by continued growth in remittances and exports, prudent import management and sustained accumulation of foreign exchange reserves.

"I hope it will continue," he said.

Bangladesh Bank spokesperson and Executive Director Arif Hossain Khan told BSS that the improvement in the country's external position reflects stronger remittance inflows, improved foreign exchange liquidity and closer monitoring of foreign exchange transactions.

He said Bangladesh Bank is closely monitoring remittance inflows, import payments and foreign exchange transactions to ensure that increased dollar supply is properly reflected in the formal banking channel and legitimate foreign exchange requirements are met smoothly.

He said the central bank is also maintaining close monitoring of transactions to prevent money laundering, trade-based financial irregularities and misuse of the foreign exchange market, alongside its regular supervision of banks and authorised dealer branches.

On remittances, he said stronger inflows of workers' earnings through formal channels are improving dollar liquidity and strengthening the country's external position.

Regarding imports, he said the central bank is closely monitoring import-related foreign exchange transactions so that genuine import requirements are met while irregularities are checked.

He said the central bank's purchase of foreign currency from banks when market liquidity improved also helped rebuild reserves after the earlier period of foreign exchange pressure.

The stronger reserve position and improved dollar liquidity are positive developments for the foreign exchange market and would strengthen Bangladesh's capacity to meet import and external payment obligations, he added.

Bangladesh received $7.702 billion in workers' remittances during July 1-September 19 of FY2026-27, registering a 13.8 percent year-on-year increase.

Foreign exchange reserves have also increased substantially. Bangladesh Bank data showed gross reserves at $36.44 billion on September 8, 2026, up 46.6 percent from $24.86 billion in September 2024. BPM6 reserves rose by 58.8 percent to $31.53 billion during the same period. 

The strengthening of the Taka is significant for the broader economy as a relatively stronger local currency can reduce the Taka cost of imported fuel, food, industrial raw materials and machinery. It can also lower the domestic-currency burden of servicing foreign-denominated obligations. 

The recent appreciation of the Taka, alongside stronger remittance inflows, improved dollar liquidity and higher reserves, reflects an improved external-sector position and provides greater room for maintaining stability in the country's foreign exchange market.