|
Date
|
Changes
to the exchange rate regime
|
Bangladesh Taka per U.S. Dollar
|
| 1 January 1972 | The Bangladesh Taka (Tk) was created to replace the Pakistan Rupee as national currency, and was linked to the Pound Sterling at a fixed rate of Tk18.9677=£1, resulting in an Official Rate at Tk7.27927 per U.S. Dollar. (WCY 1984, p.91) | |
| 11 February 1972 | Bangladesh became a member of the Sterling Area. (WCY 1984, p.91) | |
| 4 March 1972 | All Pakistan Repuee money in circulation was considered legal tender until replaced by the new Taka currency on a one-for-one basis beginning 4 March 1972. The currency changeover represented a devaluation of 34.6%in terms of gold. (WCY 1984, p.91) | |
| 23 June 1972 | With the collapse of the Pound and the dismantling of the Sterling Area, the Taka maint | |
| 27 July 1972 | A Premium Taka or Secondary Exchange Market (SEM) Rate of Tk30.00=£1.00 was created for foreign currency remittance from Bangladesh nationals abroad, under the Wage Earners' Scheme (WES) and from freely negotiable Import Entitlement Certificates issued under the Export Performance Licensing Scheme, a partial devaluation. (WCY 1985, p.93) | |
| 13 February 1973 | Following the devaluation of U.S. Dollar devaluation, Dhaka announced that the Effective Rate for the Taka would continue to float through its link to Sterling. However, based on the Taka's unchanged gold content, the Taka was realigned to Tk6.55 per U.S. Dollar. (WCY 1984, p.91) | |
| 1 July 1974 | A Resident Travel Rate was created via a 30% tax on foreign exchange authorized for travel abroad by residents. (WCY 1984, p.91) | |
| 31 December 1974 | | 8.080 |
| 17 May 1975 | The exchange rate structure was unified by the abolition of the 30% exchange tax applicable to certain purchases of travel exchange, and of the Premium Scheme for Home Remittance. (IMF 1976, p.67) The Taka's link to the Pound Sterling was changed from Tk18.9677 to Tk30.00 per British unit, thereby devaluating the Bangladesh currency's theoretical gold content by 36.77% and changing the inoperative Official Rate to Tk10.36 per U.S. Dollar. The Resident Travel Rate was abolished. (WCY 1984, p.91) | |
| 31 December 1975 | | 14.830 |
| 1976 | Exchange rates for currencies other than Sterling are based on the London market rates for the currencies concerned. (IMF 1977, p.61) | |
| 26 April 1976 | Beginning 26 April 1976, the Premium Taka Rate and the Effective Rate were periodically adjusted against the Pound Sterling. (WCY 1984, p.91)
Bangladesh established a Central/Middle Rate for the Taka of Tk28.1=£1 and availed itself of wider margins. (IMF 1976, p.64) | |
| 7 June 1976 | The Middle Rate of the Taka was adjusted from Tk28.1=£1 to Tk26.7=£1. (IMF 1976, p.65) | |
| 3 November 1976 | The Middle Rate of the Taka was appreciated from Tk26.7=£1 to Tk25.45=£1. (IMF 1976, p.65) | |
| 31 December 1976 | The Official Exchange Rate was Tk25.975=£1. (IMF 1977, p.61) | 14.950 |
| 31 December 1977 | The Official Exchange Rate was Tk27.625=£1. (IMF 1978, p.53) | 14.400 |
| 29 December 1978 | The Middle Rate of the Taka was Tk30.525=£1. (IMF 1976, p.65) | 14.930 |
| 15 January 1979 | The Official Exchange Rate was changed to Tk31.125=£1. (IMF 1979, p.56) | |
| 16 April 1979 | The Official Exchange Rate was changed to Tk32.025=£1. (IMF 1980, p.57) | |
| 28 May 1979 | The Official Exchange Rate was changed to Tk33.00=£1. (IMF 1980, p.57) | |
| 13 August 1979 | The intervention currency remained the Pound Sterling. The value of Taka was determined on the basis of a weighted basket of currencies, with fluctuation margins of 2.5% on either side.
The Middle Rate of the Taka was changed to Tk34.7118=£1. (IMF 1980, p.54) | |
| 31 December 1979 | | 15.640 |
| 29 July 1980 | The exchange rate of the Taka against the Pound Sterling was changed to Tk36.275=£1. (IMF 1981, p. 65) | |
| 13 October 1980 | The exchange rate of the Taka was subsequently changed to Tk38.45=£1. (IMF 1981, p. 65) | |
| 27 October 1980 | The exchange rate of the Taka was subsequently changed to Tk38.92=£1.
In the connection with the exchange rate change, the margins were narrowed to 1% on either side. (IMF 1981, p. 65) | |
| 31 December 1980 | | 16.250 |
| 31 December 1981 | The Middle Rate of the Taka was changed to Tk38.0068=£1. (IMF 1982, p.72) | 19.850 |
| 11 January 1982 | The Bangladesh Bank changed the rate of Taka against the Pound Sterling from Tk38.0068=£1 to Tk38.4220=£1, representing a devaluation of 1.08%. (IMF 1983, p.91) | |
| 24 August 1982 | The Bangladesh Bank changed the middle rate of Taka against the Pound Sterling from Tk38.4220=£1 to Tk39.00=£1, representing a devaluation of 1.48%. (IMF 1983, p.91) | |
| 31 December 1982 | | 24.070 |
| 11 January 1983 | The intervention currency was changed to the U.S. Dollar. (WCY 1984, p.91)
Exchange rate for currencies other than the U.S. Dollar are based on the U.S. Dollar closing rates in New York for the currencies concerned. (IMF 1984, p.82) | 24.500 |
| 28 August 1983 | | 24.550 |
| 23 September 1983 | | 24.750 |
| 12 October 1983 | | 25.000 |
| 7 July 1984 | The exchange rate under the Wage Earners' Scheme (WES) previously negotiated freely, was now to be established by a committee of authorized dealers set up by the Central Bank. (WCY 1986/87, p.404) | |
| 31 December 1984 | | 26.000 |
| 1 July 1985 | The Export Performance Licensing Scheme was replaced with an Export Performance Benefit Scheme (XPB) and Import Entitlement Certificates became available only under the Wage Earners' Scheme.
For most nontraditional exports, a rate based on 100% of the Secondary/Premium Taka Rate was to be used, while other export receipts were governed by a mix of either 1) 40% at the Secondary and 60% at the Effective Rate or 2) 70% at the Secondary and 30% at the Effective Rate. Earnings from raw jute, loose tea and wet blue leather were exchangeable at the Effective Rate. (WCY 1986/87, p.404)
The Secondary Exchange Market, comprised of the Wage Earners' Scheme and the Export Performance Benefit Scheme, became a free interbank market and was made applicable also to tourist receipts and most other services receipts. (WCY 1988/89, p.409) | |
| 31 December 1985 | The Official Exchange Rate for the Taka was adjusted on 14 different occasions during the year, from Tk26.00=US$1 at the end of 1984 to Tk31.00=US$1 at the end of 1985, involving a depreciation of 16.13%. (IMF 1986, p.114) | 31.000 |
| 31 December 1986 | The Middle Rate for the Taka in terms of U.S. Dollar was adjusted on 4 occasions during the year, from Tk31.00=US$1 at the end of 1985 to Tk30.80=US$1 at the end of 1986. (IMF 1987, p.100) | 30.800 |
| 31 December 1987 | The Middle Rate for the Taka in terms of U.S. Dollar was adjusted on 3 occasions during the year, from Tk30.80=US$1 at the end of 1986 to Tk31.20=US$1 at the end of 1987. (IMF 1988, p.94) | 31.200 |
| 17 March 1988 | The SEM Rate, instead of the Official Rate, was applied to all encashment of export receipts of the industrial unit in the Export Processing Zone (EPZs). The SEM Rate was also applied to encashment of funds brought in from abroad by the units in EPZs for meeting their local expenses. (IMF 1989, p.38) | |
| 12 November 1988 | The Secondary Market Rate did not change during the year and remained at Tk32.925=US$1. The spread between the official Middle Rate and Secondary Exchange Market (SEM) Rate was reduced below 2%. (IMF 1989, p.38) | |
| 31 December 1988 | The Middle Rate for the Taka in terms of U.S. Dollar was adjusted on 5 occasions during the year, from Tk31.20=US$1 at the end of 1987 to Tk32.27=US$1 at the end of 1988. (IMF 1989, p.38)
The Middle Exchange Rate in the secondary market was Tk32.925 per US$1. (IMF 1989, p.33) | 32.270 |
| 1 July 1989 | A cash subsidy of 10% to 20% was granted exports of jute in lieu of the XPB. (WCY 1990/93, p.401) | |
| 31 December 1989 | The Middle Exchange Rate in the secondary market was Tk32.925 per US$1. (IMF 1989, p.33) | |
| 1990 | During 1990, the Effective Rate was depreciated six times totaling 9.83%. (WCY 1990/93, p.40 | |
| 31 December 1990 | The Middle Exchange Rate in the secondary market was Tk36.505 per US$1. (IMF 1991, p.34) | 35.790 |
| 27 February 1991 | The Middle Rate of the Taka in terms of U.S. Dollar has been adjusted on several occasions, changed from Tk35.79 per US$1 to Tk38.58 per US$1. The SEM Rate changed from Tk36.505 Per US$1 to Tk38.725 per US$1. As a result, The official Middle Rate and SEM Rate were cut 7.2% and 5.7%, reducing the spread between the two from 2% to 0.38%. | 38.580 |
| 31 December 1991 | The Middle Exchange Rate in the secondary market was Tk36.505 per US$1. (IMF 1992, p.38) | |
| 1 January 1992 | The Secondary Exchange Market System (i.e. the Wage Earners' Scheme and the Export Performance Benefit Scheme) was abolished, and the exchange rate system was unified. (IMF 1993, p.48) | |
| 31 March 1992 | | 39.900 |
| 26 July 1993 | The dealings of Bangladesh Bank with domestic authorized banks were restricted to U.S. Dollar and the currencies of member countries of the Asian Clearing Union (ACU). Authorized banks are free to set their own buying and selling rates for the U.S. Dollar and the rates for other currencies based on cross rates in international markets. (IMF 1994, p.45)
Remark: Members of the Asian Clearing Union are Bangladesh, India, the Islamic Republic of Iran, Myanmar, Nepal, Pakistan, and Sri Lanka. | |
| 8 August 1993 | The spread between the Taka's buying and selling rates of the Central Bank was widened from Tk0.10 to Tk0.20 per U.S. Dollar. (WCY 1990/93, p.401) | |
| 31 December 1993 | | 39.850 |
| 31 December 1994 | | 40.250 |
| 31 December 1995 | | 40.750 |
| 1 January 1996 | Bangladesh Bank ceased to deal in the currencies of the other ACU member countries and deals with authorized domestic banks only in U.S. Dollar and the rates for other currencies, based on cross rates in international markets. (IMF 1997, p.65) | |
| 5 July 1998 | The authorities widen the buy/sell margin from 20 to 30 poisha (to approximately from 0.4% to 0.7%). (IMF 1999, p.69) | |
| 1999 | At the end of 1999, the buy/sell margin was approximately 0.6%. (IMF 2000, p.72) | |
