The taka has gained value against the rupee. The news makes it sound like great news! But is it really?
Let’s look at the numbers first.
Over the last two years the taka has strengthened about 11.6% against the rupee. In the last year alone it rose 7.6%. In 2024 it took 1.43 taka to buy one rupee. Now it takes only 1.28 taka.
Why did this happen?
There could be two reasons.
- Bangladesh’s economy is performing well.
- India’s rupee itself has weakened for other reasons.
Bangladesh Bank is presenting this with a positive spin. But there is no analysis anywhere of what the real reason is.
Who gains and who loses
Those who import from India, raw materials or machinery, will see their costs fall. Those who travel to India will also save a little.
But what about exporters?
For them it’s the opposite: a struggle. When the taka is strong, Bangladeshi products become relatively expensive for foreign buyers.
So for one group this is a benefit, and for another it’s a challenge. The way media headlines work, they don’t show the whole picture.
The real question
Is this strength sustainable, or temporary?
Is it happening because remittances have increased, or because import demand fell and reduced the demand for dollars and rupees?
Understanding the reason will tell you whether it will last or reverse again.
So whenever you read any economic news, don’t decide just from the headline number. Look for the reason behind the number.
Then you’ll understand whether this is really news worth celebrating, or just a temporary fluctuation.
Originally shared on Facebook