Bangladeshi taka

Bangladeshi taka
Tanvir · Public domain · source
Name	Taka
Local name	টাকা
Iso code	BDT
Subunit name	Poisha
Subunit ratio	1/100
Issuing authority	Bangladesh Bank
Introduced	1972

Bangladeshi taka The Bangladeshi taka is the official currency of Bangladesh, introduced after the 1971 Bangladesh Liberation War and instituted by Sheikh Mujibur Rahman's provisional administration and later formalized under the Constitution of Bangladesh. The currency is managed by Bangladesh Bank and circulated alongside banking instruments from institutions such as Sonali Bank, Janata Bank, Dutch-Bangla Bank, BRAC Bank and used in markets from Dhaka to Chittagong and Sylhet. The taka's role intersects with international institutions including the International Monetary Fund, World Bank, Asian Development Bank, and regional trade partners like India, China, Japan and United States.

History

The taka replaced the East Pakistani rupee following independence, with initial issuance overseen by Taka (provisional notes) committees and printing contracts awarded to firms linked to Thomas de la Rue and later state presses in Dhaka and Gazipur. Early currency decisions were made amid post-war reconstruction led by Sheikh Mujibur Rahman, involving fiscal policy coordination with the International Monetary Fund and aid flows from United Nations agencies, USAID, European Union donors and Soviet Union relationships during the 1970s. Monetary reforms under Hussain Muhammad Ershad and later governments, including administrations of Khaleda Zia and Sheikh Hasina, introduced new series, redenominations proposals, and anti-inflation measures inspired by central banking reforms in Malaysia, South Korea, Singapore and Thailand.

Design and Security Features

Banknote designs of the taka have featured portraits and motifs connected to national figures and heritage such as Sheikh Mujibur Rahman, Bangabandhu Sheikh Mujibur Rahman, the Language Movement martyrs memorials, and images of landmarks like the Shaheed Minar, Ahsan Manzil, and rural scenes from Padma River delta. Security features include watermarks, security threads, microprinting, intaglio printing, latent images, and optically variable inks supplied by international firms such as De La Rue, Giesecke+Devrient, and local security printing by the Bangladesh Government Press. Anti-counterfeiting measures have evolved alongside technologies used by central banks in United Kingdom, United States, Germany and Japan, integrating machine-readable features compatible with automated teller networks run by Mastercard and Visa-linked clearing systems.

Denominations

Current circulating denominations include coins and banknotes with subdivisions to the poisha; coin types have historically included 1, 5, 10 and 25 poisha and 1, 2 and 5 taka units, while banknotes commonly issued are 2, 5, 10, 20, 50, 100, 500 and 1000 taka. Commemorative issues have marked events like Victory Day (Bangladesh), the Bengali Language Movement, and anniversaries of figures such as Kazi Nazrul Islam and Rabindranath Tagore translations, and special circulation notes were released during occasions involving the Commonwealth and SAARC summits. Currency artwork has been influenced by artists and designers associated with institutions like the Institute of Fine Arts, University of Dhaka and cultural archives tied to Bangladesh National Museum.

Issuance and Monetary Policy

Issuance of taka is the statutory responsibility of Bangladesh Bank, whose governors — including notable incumbents linked to policy changes — coordinate with fiscal authorities in the Ministry of Finance (Bangladesh), international lenders such as the IMF and ADB, and domestic banks like Agrani Bank and Rupali Bank. Monetary policy tools include open market operations, reserve requirements, and policy rates set vis-à-vis macroeconomic indicators tracked by agencies like the Bangladesh Bureau of Statistics and institutions such as Petrobangla, Bangladesh Petroleum Corporation, and export sectors centered in Garments industry hubs serving global brands such as H&M, Zara (Inditex), and Gap Inc.. Policy adjustments have responded to shocks including global commodity price swings, remittance flows from diaspora communities in United Kingdom, Saudi Arabia, United States and United Arab Emirates, and trade balances with partners including India and China.

Exchange Rate and Economy

The taka's exchange rate has been influenced by bilateral trade ties with India, China, United States, Japan, United Kingdom and the European Union, export earnings from the textile industry and ready-made garments, remittances from migrant workers in Middle East countries, and inflows of foreign direct investment from entities such as Tata Group, Samsung, Huawei and Standard Chartered. Exchange rate regimes have moved between managed float and more market-oriented frameworks, with interventions coordinated by Bangladesh Bank and informed by models used in Indonesia, Philippines and Vietnam. Macroeconomic indicators—inflation, foreign exchange reserves, and current account balances—are monitored by domestic ministries and international observers like the International Monetary Fund and World Bank.

Counterfeiting and Legal Tender Issues

Counterfeiting incidents have involved networks traced by law enforcement agencies including Dhaka Metropolitan Police, customs units, and prosecutions under statutes administered by the Ministry of Home Affairs (Bangladesh), with technical assistance from international partners such as Interpol and central bank security consultants from De La Rue and Giesecke+Devrient. Legal tender status, demonetization episodes, and currency replacements require coordination among the Bangladesh Bank, treasury departments, and commercial banks including Islami Bank Bangladesh Limited and Mutual Trust Bank. Public advisories on genuine notes are issued via media outlets like The Daily Star, Prothom Alo, The Bangladesh Observer and broadcast by Bangladesh Betar.

Category:Currencies of Asia