Bangladeshi Taka

Name of Currency:  Bangladeshi taka

Country / countries used:  Bangladesh

Symbol:  ৳, Tk

Brief history:

The Bengali word “Taka” translates to mean roughly any currency, money or notes.  This results in speakers of Bengali referring to any sort of money, regardless of the currency to which is belongs.

When the province of East Bengal gained independence in 1971 and became an independent nation called Bangladesh, the new country used the Pakistani rupee as its interim currency.  The following year the taka was introduced and replaced the rupee at par.  A single taka is divided into 100 poisha.  The frequently used taka coins appear in 1, 2 and 5 taka forms, and also 1, 5, 10, 25 and 50 poisha coins exist, although poisha coins are rarely used.  Interestingly, all issuance of currency is the responsibility of the Bangladesh Bank, apart from one and two taka notes, which are the responsibility of the Ministry of Finance.

At the creation of the currency, the Bangladeshi taka was set at a money exchange rate of 7.5 and 8 to a single US dollar.  The taka’s value ever year from 1971 through to the end of 1987 has declined in value, relative to the US dollar.  In recent times this pattern has continued, and one US dollar is now worth approximately 82 Bangladeshi taka.

In 2012 it is estimated that Bangladesh’s GDP will stand at 6.5 per cent, avoiding any ill effects from the global financial crisis.  The economy continues to grow and expand, despite problems such as; where to place their labour force as jobs in agriculture are scarce, growing issues with bureaucracy which are protracting the amount of time economic reforms take to pass, and a shortage of power supplies.

There is undoubtedly continued growth on the horizon for Bangladesh, as contracts have been negotiated with foreign firms that will be searching for gas and oil.  The planned construction of various power stations and natural gas pipelines will address the problems with power in rural areas of the country.

Bangladesh’s main export partners are the US, Germany, the UK, France and the Netherlands.  Clothing and pharmaceutical good constitute Bangladesh’s main export goods.  The main imports of the country are machinery and equipment, chemicals, iron and steel – all indicative of a country that is growing successfully.
