Bangladeshi taka

Infobox Currency
currency_name_in_local = বাংলাদেশী টাকা bn icon
image_1 = 5 taka coin.jpg
image_title_1 = 5 taka coin
image_width_1 = 90
image_2 =
image_title_2 =
image_width_2 = 93
iso_code = BDT
using_countries = Bangladesh
inflation_rate = 7.2%
inflation_source_date = " [https://www.cia.gov/library/publications/the-world-factbook/fields/2092.html The World Factbook] ", 2006 est.
subunit_ratio_1 = 1/100
subunit_name_1 = poisha
symbol = ৳, ৲
frequently_used_coins = 1, 2, 5 taka
rarely_used_coins = 1, 5, 10, 25, 50 poisha
used_banknotes = 1, 2, 5, 10, 20, 50, 100, 500 taka
issuing_authority = Bangladesh Bank
issuing_authority_website = www.bangladesh-bank.orgThe taka (Bengali: টাকা "ṭaka") is the currency of Bangladesh. It has the ISO 4217 code "BDT" and is subdivided into 100 poisha (Bengali: পয়সা "pôesha"). The symbols Unicode|৳, ৲ and (in English) Tk are used to represent the taka. For example, Unicode|৳৫০, Unicode|৳50 or Tk 50 would represent 50 taka.

History

The taka became Bangladesh's currency in 1972, replacing the Pakistani rupee at par. The word "taka" is derived from the Sanskrit term "tanka" which was an ancient denomination of silver coin. The term taka was widely used in different parts of India but with varying meanings. In north India, taka was a copper coin equal to two paise and in the south, it was equal to four paisa or one anna. It was only in Bengal and Orissa where taka was equal to the rupee. In all areas of India, taka was used informally for money in general. However, Bengal was the stronghold of the taka.

The rupee was introduced by the Turko-Afghan rulers and was strongly upheld by the Mughals and the British rulers. The Bengali people always used the word taka for the rupee, whether silver or gold. Ibn Battuta, the Arab traveller, noticed that, in Bengal, people described gold coins (Dinar) as gold "tanka" and silver coin as silver "tanka". In other words, whatever might be the metallic content of the coin, the people called it taka. This tradition has been followed to this day in eastern regions like Bangladesh, West Bengal, Tripura, Orissa, and Assam. The Indian rupee is officially known as টাকা "ṭaka" in Bengali, টকা "tôka" in Assamese, and ଟଙ୍କା "ṭôngka" in Oriya, and is written as such on Indian banknotes.

Value fluctuation

At independence the value of the taka, Bangladesh's unit of currency, was set between 7.5 and 8.0 to US$1.Lawrence B. Lesser. "Currency Fluctuation". [http://lcweb2.loc.gov/frd/cs/bdtoc.html "A Country Study: Bangladesh"] (James Heitzman and Robert Worden, editors). Library of Congress Federal Research Division (September 1988). "This article incorporates text from this source, which is in the public domain." [http://lcweb2.loc.gov/frd/cs/about.html] ] With the exception of fiscal year 1978, the taka's value relative to the dollar declined every year from 1971 through the end of 1987. To help offset this phenomenon, Bangladesh first used the compensatory financing facility of the International Monetary Fund in fiscal year 1974. Despite the increasing need for assistance, the Mujib government was initially unwilling to meet the IMF's conditions on monetary and fiscal policy. By fiscal year 1975, however, the government revised its stance, declaring a devaluation of the taka by 56 percent and agreeing to the establishment by the World Bank of the Bangladesh Aid Group.

Between 1980 and 1983, the taka sustained a decline of some 50 percent because of a deterioration in Bangladesh's balance of payments. Between 1985 and 1987, the taka was adjusted in frequent incremental steps, stabilizing again around 12 percent lower in real terms against the United States dollar, but at the same time narrowing the difference between the official rate and the preferential secondary rate from 15 percent to 7.5 percent. Accompanying this structural adjustment was an expansion in the amount of trade conducted at the secondary rate, to 53 percent of total exports and 28 percent of total imports. In mid-1987, the official rate was relatively stable, approaching less than Tk31 to US$1.

Coins

In 1973, coins were introduced in denominations of 5, 10, 25 and 50 poisha. 1 poisha coins followed in 1974, with 1 taka coins introduced in 1975. The 1, 5 and 10 poisha were struck in aluminium, with the 25 and 50 poisha struck in steel and the 1 taka in copper-nickel. The 5 poisha were square with rounded corners, whilst the 10 poisha were scalloped. Steel 5 taka were introduced in 1994, whilst a steel 2 taka coin followed in 2004.

1 and 5 poisha coins are rarely found in circulation. 10, 25, and 50 poisha coins do not circulate widely. Only the 1, 2 and 5 taka are regularly found in circulation.

Paper money

In 1971, Pakistani notes for 1, 5 and 10 rupees were overstamped for use in Bangladesh. These were followed in 1972 by treasury notes for 1 taka and notes of the Bangladesh Bank for 5, 10 and 100 taka. In 1975, banknotes for 50 taka were introduced, followed by 500 taka in 1977 and 20 taka in 1980. 1 taka treasury notes were issued until 1984, with 2 taka treasury notes introduced in 1989.

In the year 2000, the government issued polymer 10-taka notes as an experiment (similar to the Australian dollar). They proved unpopular, however, and were withdrawn later. At present, the 1-taka and 5-taka notes are gradually being replaced with coins.

ee also

* Economy of Bangladesh

References

*numis cite SCWC|date=1991
*numis cite SCWPM|date=1994

External links

Standard numismatics external links
world_coin_gallery_1_url = Bangladesh
world_coin_gallery_1_name = Bangladesh
banknote_world_1_url = bangladesh
banknote_world_1_name = Bangladesh
dollarization_1_url = asia
dollarization_1_name = Asia
gfd_1_url = Bangladesh
gfd_1_name = Bangladesh
show_gfd_excel = Y
* [http://www.bangladesh-bank.org/currency/currincirculate.html Bangladesh Bank's page on currencies in circulation]