BDT (Bangladesh Taka)

DEFINITION of 'BDT (Bangladesh Taka)'

BDT is the currency abbreviation or currency symbol for the Bangladesh taka (BDT), the currency for Bangladesh. The Bangladesh taka is made up of 100 poisha and is often presented with the symbol ó, ò, or Tk.

The word "taka" originated from ancient denominations of silver coins called tanka.

BREAKING DOWN 'BDT (Bangladesh Taka)'

Large Bangladesh banknotes are controlled by the Bangladesh Bank, the central bank of Bangladesh, while the smaller denominations are the responsibility of the Ministry of Finance. 

The Bangladesh taka was first seen in 1972 when it replaced the Pakistan rupee with an exchange of one for one. Between inception and 1987 there was reduction in value relative to the U.S. dollar. In 1974, in an attempt to offset this, the Bangladesh government started using the International Monetary Fund's compensatory financing facility. By 1987 the devaluation was relatively under control, however the drop in value of the Tk had been from about $0.129 in 1972 to $0.032 in 1987.

In 2011, the Bangladesh Bank also introduced a 40 BDT note to commemorate the Victory Anniversary of Bangladesh. The notes featured the first prime minister and first president of Bangladesh Sheikh Mujibur Rahman. 

Despite its plight against the taka against the U.S. dollar, its value has remained steady against the neighboring Indian Rupee (INR).