history of currency in Bangladesh:
The history of currency in Bangladesh is complex and has undergone significant changes over the years, reflecting the political, economic and social developments of the country.
Here is an overview of important milestones in the history of money in Bangladesh:
Pre-independence period:
Prior to becoming independent, Bangladesh was a province of British India and its currency was the rupee. One rupee is made up of 64 coins and is divided into 16 annas.
Division of the Pakistani rupee and its introduction:
British India was split in two sovereign nations in 1947: Pakistan and India. East Bengal (now Bangladesh) became part of Pakistan and started using the Pakistani rupee (PKR) as its official currency.
Bengali language movement and anti-currency movement (1952):
The Bengali Language Movement of 1952, an important socio-political movement, led to protests against the imposition of Urdu as the sole official language. As part of this movement, people in East Bengal boycotted the use of Pakistani banknotes, instead using the term “taka”.
Introducing Taka Bangladesh (1971):
Bangladesh gained independence during the 1971 Bangladesh Liberation War. On December 4, 1971, the Bangladesh Taka (BDT) was introduced as the official currency, replacing the Pakistani rupee at par. Taka is divided into 100 poisha.
Taka’s (1973) reassessment:
In 1973, the Bangladeshi Taka underwent a significant revaluation to address the problem of high inflation. New Taka was introduced at the rate of 1 new Taka for every 100 old Taka.
The birth of polymer money (2016):
In 2016, Bangladesh introduced polymer currency to replace traditional banknotes in denominations of 10, 20 and 50 taka. Polymer currency was introduced to improve the durability, security features, and overall longevity of the currency.
Souvenirs and coins:
Bangladesh issues commemorative banknotes and coins on various occasions to honor historical events, notable figures and achievements.
Current circulation:
The Bangladeshi Taka (BDT) is currently the official currency of Bangladesh and is issued in both banknotes and coins of different denominations.
Bangladesh’s monetary history reflects the struggle for independence and the establishment of a distinct national identity. The Bangladeshi Taka has developed into a crucial component of the national economy and way of life.
Currency of Bangladesh Benefits and Drawbacks:
Bangladesh’s national currency is the Bangladeshi Taka (BDT). Like any other currency, it comes with its own set of advantages and disadvantages, which impact the country’s economy, trade, and the lives of its citizens.
Advantages:
Sovereignty and Independence: Having its own currency provides Bangladesh with economic sovereignty and independence in monetary policy decisions, allowing the government to regulate money supply, inflation, and interest rates to suit the country’s economic needs.
Exchange Rate Control: Bangladesh can control its exchange rates, which can help in managing trade imbalances, supporting the export industry, and ensuring price stability.
Monetary Policy Flexibility: The country can tailor its monetary policy to address domestic economic conditions, promoting growth, controlling inflation, and ensuring financial stability.
Facilitate trade: Using one’s own currency can simplify domestic trade transactions, thereby reducing the complexity associated with using multiple foreign currencies for domestic trade.
Cultural and National Identity: Bangladeshi Taka symbolizes the country’s cultural and national identity, reflecting its history and values.
Defect:
Exchange rate fluctuations: The value of the Bangladeshi Taka may fluctuate against other currencies, affecting trade and foreign exchange reserves. Sudden depreciation can lead to higher import costs and inflation.
Maintaining sufficient foreign exchange reserves is crucial for the stability of the taka and effective exchange rate management. Any excessive depreciation or depreciation could deplete reserves and affect economic stability.
Dependence on imports: Bangladesh depends on imports of various goods and services, and low Taka can increase the cost of imports, thereby affecting the cost of living of people and businesses.
Inflationary Pressure: If the value of the Taka depreciates significantly, this could lead to import inflation due to increased prices of imported goods and raw materials.
Foreign trade and investment: A weak or unstable currency can discourage foreign trading and investment partners, affecting their ability to attract foreign capital and conduct international trade effectively. fruit.
Global economic factors: Bangladesh is vulnerable to global economic conditions and geopolitical events that could affect the value of its currency. These external factors can impact the country’s stability and economic growth.
In summary, the Bangladeshi Taka offers economic independence and flexibility, but its value and stability can be affected by domestic and global factors. This requires careful management to ensure the interests of the country and its people are best served.
Bangladesh, India launch trade in local currency:
In an effort to lessen their reliance on the US dollar and enhance regional trade, Bangladesh and India conducted the much anticipated commercial transaction on Tuesday in local currency.
For the first time, Bangladesh and India are beginning their bilateral trade in Indian rupees in addition to US dollars. According to the Bangladeshi central bank, trade will initially be conducted in rupee and then progressively switch to the Bangladeshi currency taka as the trade deficit between the two nations narrows.
Due to the dollar problem that both of these neighbors are experiencing, it has been decided to do all business in local money.
The local currency-based transaction was launched at an event jointly arranged by Bangladesh Bank and the Indian High Commission in the city of Dhaka.
It is now legal for banks in Bangladesh and India to open nostro accounts, which are accounts at banks in other nations used for foreign exchange transactions.
The inauguration ceremony was held at a hotel in Dhaka with participation from Bangladesh Bank Governor Abdur Rouf Talukder and Indian High Commissioner Pranay Verma.
According to the governor at the opening ceremony, the launch gained impetus after Bangladeshi Prime Minister Sheikh Hasina’s recent trip to India.
Amit Kumar, the head of State Bank of India’s operation in Bangladesh, stated in his presentation that the exchange rate will be decided in accordance with market demand and the banks involved in the process.
